Retirement plan sponsors should spend as much time developing an education policy statement as they do an investment policy statement, according to industry experts. Having a good communications plan in place can have a positive effect on employee retirement readiness, says Jeffrey Hemker, national sales manager for Invesco’s retirement division.
And while there are many companies that view plan communications as an obligation, rather than an opportunity, “you have to get past that and understand the value of a 401(k) plan. There is a lot of expense and time that goes into 401(k) plans, but not every sponsor sees the value it brings to employees or gets that concept across to them,” he says. “Part of the process is getting buy-in from plan sponsors about what are the key benefits for them and how they benefit from higher participation and people with higher account balances.”
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