Employee Education

Employee education is an important part of the fiduciary process and employers should not underestimate its importance to the overall health of the company-sponsored retirement plan.

Modern Wealth Management assists plan sponsors in developing a written Employee Education Plan. The plan guides the annual education process—identifying the program goals, the content to be delivered, the schedule of activities, and the targets for evaluating program effectiveness.

A typical plan will encompass the elements of:

  • Group education
  • Training
  • Communication
  • Guidance

ERISA requires plan administrators to furnish plan and investment information to participants and beneficiaries and to furnish specific documentation that explains the plan and apprises participants of their rights and responsibilities under the plan. Participants are looking for broader, more holistic information. The Department of Labor encourages employers to provide that guidance.

One-on-One Participant Guidance

Understanding the basics is a great starting point, by employees want and need more individualized retirement savings planning.

Modern Wealth Management provides a one-on-one approach which is consultative and visual. Our Pathway to Success coaching helps each participant answer the question, “Will I have enough income for my retirement?” Using specific participant data, we identify potential retirement income gaps and model various scenarios that close the gaps. Post-meeting, participants are provided with their personal Pathway to Retirement Success Plan reiterating the scenarios discussed and suggest the strategies employees may employ to work toward improving their chances of savings success.

Our Pathway to Success program is measurable in terms of both increased plan participation and deferral rates.

Group Education

We deliver engaging group education to ensure employees develop an understanding of the retirement plan program and the opportunity it offers for saving adequately for retirement.

Group communication will encompass

  • Investment education and plan features
  • Review of the plan’s investment alternatives
  • Retirement savings and financial wellness topics
  • How to use various tools (i.e., web, voice, call center) to access and manage the retirement account

This information was developed as a general guide to educate plan sponsors, but is not intended as authoritative guidance or tax or legal advice. Each plan has unique requirements, and you should consult your attorney or tax advisor for guidance on your specific situation. In no way does advisor assure that, by using the information provided, plan sponsor will be in compliance with ERISA regulations.

 

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