FAQs for Employers
I would be interested in providing a state-run retirement savings program for my employees, but how would I set it up?
Much depends on the structure of the adopted program. Under one scenario, you would open the door – or plant a seed – for a more secure retirement for your employees by adding one more payroll deduction to your current processing operation. After participating employees indicate how much they’d like you to deduct from their paychecks during each pay period, the deductions would happen automatically.
What if I already provide a retirement savings plan to employees?
We applaud you for doing so. In one possibility, all you would need to do is certify with the PA treasury that you offer a qualified plan to your employees. Easy.
What advantage would there be for me to offer a PA retirement security program to my employees?
People are the deciders in the success or failure of a business. Fail to attract the best talent for the positions that are vital to your business’ success and your competition wins. Workers at all levels are attracted to a benefits plan, no matter its size, that includes something for their retirement. Not offering a retirement savings plan is like trying to sell a house with no air conditioning. It can be done, but buyers will look elsewhere for a house that can keep them cool when it’s hot.
Would my business be at risk if the investment performance of my employees’ retirement security accounts go down?
Under an auto-IRA-like program, not at all. It’s one of the beautiful things about this kind of retirement savings program. When approved, employers would not:
- Have any liability for an employee’s decision to participate in, or opt out;
- Have any liability for the investment decisions of participating employees;
- Be a fiduciary of the program;
- Bear responsibility for the administration, investment, or investment performance of the program.
Are retirement savings programs really needed?
A recent survey by AARP found that a whopping 84 percent of workers 18-64 support laws that make it easier to save for retirement.