Many companies, especially small ones, do not offer a 401(k) retirement benefit to their employees. Concerns about costs, administrative complexities, and fiduciary liability deter employers from offering these essential vehicles for retirement savings. In response to this situation, financial services companies have developed offerings that allow companies to join a larger plan administered by another organization. Administration, expenses, and liability are all transferred from the employer to the plan administrator.
MassTLC, in recognition of its members’ needs, is launching The MassTLC Retirement Plan and opening it to all active members as a free, added benefit. The MassTLC Retirement Plan will be administered by Slavic401(k) and UBS Financial Services. These two respected organizations will handle the full range of administrative functions, from employee eligibility tracking to annual reporting. For more information about plan administration, download the plan PDF.
Slavic401(k) and UBS have worked with other tech councils to offer this type of plan. We had the chance to ask Steven Zylstra, President and CEO of the Arizona Tech Council (AZTC), about his members’ experience with the 401(k) plan.
How have your member responded to the new offering? How has it helped them?
Our Member’s response has been positive. The top 2 challenges for our technology companies of every size are 1) raising risk capital and 2) the attraction/retention of quality employees.
With a benefit like our 401(k), our members have access to a world-class 401(k) with fiduciary protection, time savings and, of course, extremely competitive pricing.
This 401(k) allows the firms to better compete in the attraction and retention of qualified employees.
What are the greatest benefits that your members have received by participating in your 401(k) offering?
The best part about the way that our 401(k) is set up is that our members who adopt it are able to customize their plan the way they want. They enjoy all of the benefits of a 401(k) and get to spend less time running it.
All of their retirement plan needs are covered, and they receive as much attention or servicing as is required for their organization.
Are there other benefits to the offering that your members didn’t expect?
Some firms didn’t realize how much work they were doing on administering their 401(k), not to mention how much time their C-Suite needed to spend on making sure they were compliant with the Department of Labor and ERISA. They no longer need to hold investment committee meetings, file 5500s, complete audits, and send out notices to all their employees. These responsibilities are covered by the Council’s 401(k) program.
Companies that have adopted our 401(k) have found that they have happier employees.
What has your experience with UBS been like?
UBS is one of the contracted fiduciaries. Having one of the best capitalized and largest banks in the world as our fiduciary partner helps us sleep better at night.
UBA directs our investment committee meetings, supports our member outreach, and has supported our council’s ambassador and business essential program for years. They have proven their professionalism and they continue to support our culture of “a place to connect and grow.”
Their knowledge in the retirement plan space is a big asset for us. We are able to provide our members with something they can’t get many other places. That is extremely valuable as it is another business advantage for our members.
Having the Institutional team from UBS working for us, helps us to stay compliant, and adds a major benefit for our members and their employees.