More help is on the way to make it easier for small businesses to offer a 401(k) plan to their employees.
With millions of Americans without access to a workplace retirement plan and many businesses struggling to offer their employees the benefits they deserve, SHRM (Society for Human Resource Management) today announced the availability of the “SHRM 401(k) Solutions by Raymond James” program.
The benefit offers a “marketplace” for employers to shop for a retirement plan with better pricing and time savings, while potentially outsourcing significant liabilities, risks, and expertise to successfully manage a 401k plan.
SHRM 401(k) Solutions by Raymond James comes on the heels of the passage of the SECURE Act and in the midst of discussions in Washington about the critical role that 401k plans will play in America’s financial future. Passed in 2019, the SECURE Act acknowledges that many small to mid-sized organizations do not have access to the necessary resources to meet their employees’ retirement needs.
“Today, HR professionals are focused on helping their business make it to the other side of this pandemic and are looking to identify forward-thinking ways to be there for employees holistically,” said Nick Schacht, SHRM-SCP, SHRM chief global development officer. “We have employees coming out of one of the most challenging economic times of their lives—eager to proactively save. Without that coveted retirement plan in place, workers are simply less likely to invest in their future.”
With this new program, SHRM said in a July 14 statement announcing the news that “employers can now offer workers high-quality, competitively priced investment options—the kind typically only available with large employers.” With 300,000+ HR and business executive members in 165 countries, SHRM says it impacts the lives of more than 115 million workers and families globally.
HR professionals lack both the time and, in many cases, the prudent expertise to administer and manage the complexities of offering a 401k, the release continued. This solution simplifies the burdensome process. As plan sponsors, employers have an opportunity to outsource various fiduciary functions including the investment management, plan administration, recordkeeping and educational components of the plan.
“Every employer, regardless of size, should have the ability to offer a quality, affordable 401k plan. And every plan sponsor should be confident they are making sound decisions regarding the management of those plans,” Schacht said. “Now, employers don’t have to do this alone. SHRM 401(k) Solutions by Raymond James works side by side with employers, strengthening retirement plan administration and supporting the financial wellness of millions of employees and their families.”
Scott Curtis, president of Raymond James’ Private Client Group, added that three in four workers are looking for more resources to help them with their overall financial wellbeing. “We also know defined contribution plans such as 401k plans are a primary savings vehicle for working Americans to provide retirement income in the future,” Curtis said. “Small businesses need an efficient and cost effective option to offer these important savings vehicles for their employees, and we’re proud to be able to extend our 401k solutions offering to interested SHRM-affiliated employers.”
The new benefit also offers a complimentary benchmarking report where employers can assess their current plan fees, have service providers compete for their business, and identify where they can upgrade quality and service while potentially reducing costs.
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