3 Things Every Employee Management Plan Services Manager Should Know
A company employee plan services management system is a program that provides an interface for employees to manage their retirement plans online. Employees can design, enroll in, and update investments as well as view the account balance at any time. This type of software enables employers to stay compliant with ERISA (Employee Retirement Income Security Act) regulations and provides transparency between the employer and their employees. The article will discuss how companies can approach setting up a plan system that benefits both employee and employer.
Identify the company’s goals and objectives
The company’s goal is to provide an interface for employees that will allow them to manage their retirement plans online. The objective of the system would be compliance with ERISA regulations and transparency between employer, employee.
Determine which plans will be managed by the system
The company should identify which plans they want to manage with ERISA compliant, online employee plan services systems: 401(k)s; 403b’s (tax-deferred annuities); 457 Plans for state or local government employees; SEP IRAs.
Develop policies and procedures for managing plans, including who has access to what information
Creating clear guidelines for program managers and administrators will help the company maintain compliance with ERISA regulations. Policies and procedures should include who as access to what information, as well as what to inform employees on. Effective policies will inform on how often employees can change their contribution rates or investment allocations, if applicable; how they are notified of changes in fees for services provided by third parties such as custodians that manage 401(k)s on.
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