Technical plan design and strong market returns are secondary to the program’s real ultimate goal: participant engagement. Without high levels of employee participation and informed decision-making, even the most sophisticated investment strategy fails to deliver meaningful results. The plan sponsor’s most critical role, therefore, is to proactively empower employees with the education and tools necessary to turn potential returns into actual retirement security.
At to be effective, retirement education must strategically address broader topics like overall financial wellness, the importance of consistent contribution strategies, and the full value proposition of the organization’s matching contribution, if one is offered. Non-profit employees, who often come from diverse financial backgrounds, benefit immensely from educational resources presented in clear, plain language that demystify the complex world of retirement planning.
Plan sponsors must actively seek to partner with plan providers who demonstrate the capacity and commitment to deliver high quality, engaging educational resources specifically tailored to their unique workforce and its needs. By actively promoting robust financial literacy and providing easy to use tools, the plan sponsor partners with a supportive team at The 403(b) PEP to demonstrate a powerful, tangible commitment to employee long term well being that powerfully reinforces the organization’s overall mission and values. An educated and engaged workforce is one that understands, values, and effectively utilizes its retirement benefits to secure its future.
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