IMHO: Why Bother?
Here’s a question to ask yourself: “Why do you offer a 401(k) plan?” I’m guessing that many, perhaps most of you, would say simply, perhaps without giving it much thought, “to attract and retain good employees.” That’s what more than half of the plan sponsors canvassed in a recent Wells Fargo survey said (see “ Survey Suggests Gaps in Plan Sponsor Goals, Roles ”), and it’s one of the top reasons cited by none other than the Department of Labor ). I’m guessing a similarly high number of you might say you “have” to offer the plan as part of your benefit offerings to be competitive. In fact, I was surprised that 45% of the respondents to that Wells Fargo survey indicated that a primary goal of the program was to provider workers with the means to arrange for a financially sound retirement. Not that that isn’t in the back of plan sponsor minds; I just don’t think it looms large as a rationale for the time, energy, and expense of establishing and keeping these programs in place. Still, ...