- Streamlined compliance testing. Some plans must go through complex, annual compliance testing to ensure that highly compensated employees (HCEs) are not disproportionately benefiting relative to rank-and-file employees. Failing these tests can lead to added headaches and expenses: the employer may have to refund deferrals to HCEs or make contributions to non-HCEs in order to pass the test. The good news is that you can potentially avoid compliance testing failures through increased participation and contributions from non-HCEs.
- Enhanced productivity. Actuaries estimate financial stress costs 15% to 20% of the total compensation paid to your employees.* Focusing on financial wellness can help reduce financial stress among your staff, creating more job satisfaction, and driving better business performance.
*“Measuring the ROI of Financial Wellness,” American
Society of Pension Professionals & Actuaries, September 2018.