At the 2018 GRP Advisor Alliance Conference, Keith Gredys of Kidder Advisors focuses on strategies for improving pension plans for small to micro-sized businesses. The conversation takes place in San Diego and focuses on designing a pension plan that benefit both employees and employers, particularly for companies with about 35-40 employees and under $25 million in assets.
Key strategies discussed include:
- Auto-enrollment and Auto-escalation: Gredys emphasizes the importance of integrating auto-enrollment and auto-escalation features into pension plans. These features help in building a larger tax shelter while providing robust benefits to employees. This not only simplifies the saving process but also enhances the overall value of the pension plan.
- Balancing Benefits: The approach aims to create pension plans that offer a win-win solution for both the employees and the ownership group. This involves designing plans that are beneficial from a retirement perspective for employees and financially advantageous for employers through significant tax benefits.
- Holistic Plan Design: The focus is on holistic plan design that takes into account the needs of both key employees and business owners, aiming to provide substantial retirement security and corporate financial efficiency.
- Educational Challenges: Gredys acknowledges the challenges in educating both employers and employees about these complex plan features. Effective communication and education are crucial to ensure that all parties understand and appreciate the benefits and workings of the enhanced pension plans.
The discussion highlights the importance of strategic pension plan design in small business settings, illustrating how tailored plan features can provide enhanced benefits and tax efficiencies, fostering a better understanding among stakeholders, and facilitating the successful implementation of these plans.