美国研究生课程-福利管理401K基础知识
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– Very important to document provider choice
Chief Duties of Retirement Plan
Committees
• ADMINISTRATION • Design plan. • Choose and monitor third-party record keepers, other service providers. • Ensure government compliance. • Amend plan document as needed. • Handle employee communications. • Decide benefits claims and appeals. • Provide for financial education. • INVESTMENT MANAGEMENT • Write and ensure adherence to investment policy statement. • Choose specific investments or recommend them to full committee. • Hire and monitor investment managers, other service providers. • Review investment performance and make changes as needed.
Now add the match [100%]
10 years
$31,824
20 years
$102,590
30 years
$259,947
Assumes a $20 weekly contribution, 100% match, and an 8% annual return compounded monthly
See sample Fiduciary Service Timeline
Good Advice from HR Magazine about Committee Responsibility
• These nuts and bolts of setting up and running a committee may not be glamorous, but the devil is in the details. Following the three P’s—prudence, process and procedure— can result in a well-functioning committee that provides the best retirement plan for participants while insulating top executives from legal liability.
404C Compliance
• Very Critical to HR Field • Erisa Section 404 (C) provides limited
fiduciary relief to plan sponsors, assuming participants can exercise control over their accounts. • EMPLOYERS MUST EDUCATE BUT CAN NOT GIVE INVESTMENT GUIDANCE AND/OR ADVICE
Welcome
Info
Why Save Benefits
Process
2030 2.2 workers per Social Security Recipient
Your Role
Social Insecurity?
• People are living longer i
• Most likely, you will enjoy 20-30 years of retirement
Did you know?
According to the U.S. Census Bureau, in 2005 there were over 70,000 Americans age 100 and older.
This is expected to increase to 1.1 million by 2050.
ห้องสมุดไป่ตู้
401 (K) Basics
What you should and need to know!
What is a 401 (k) Plan
• Enron crash and people running around saying 401 (k) was a bad idea
Retirement
What we’ll cover today
• Info
– Why save and the benefits of your plan
• Process
– How to make the plan work for you
• Your role
– What you need to do
Welcome
• Defined Benefit Plan For example State Retirement System based on last 3 years salary average * the number of years of service as a percentage
• Defined Contribution Plan—401k • Typical match is 50 cents on the dollar up
Agenda
• Review Exams • Talk about Applied Knowledge and Goal
moving forward • Overall Goal of a 401 (k) Plan • Company Responsibility • HR Responsibility • Individual Responsiblity • Exercise
Investment Policy
• State what the overall goal of the company is in offering the 401 (k) and how it will be administered
• Should have an investment committee
income
Ed’s 6% Regular Savings*
Jane’s 6% Plan Savings
$25,000 0
25,000 -3,750 -1,913 -1,500
$17,837
annual base wage pretax contributions pay subject to income tax tax** Social Security regular savings spendable income
The company makes a $1.00 contribution to your account
Vesting schedule
• Your entitlement to the employer’s contribution portion of your account
– You are immediately Vested 100%
Jane’s taxable income is lower, resulting in $225 more in spendable income than Ed
*An investment in a savings account at a bank may be FDIC insured; an investment through the plan is not. **This example assumes a 15% tax rate. This is a hypothetical example for illustrative purposes only, your situation will vary.
Flexible withdrawals
• Termination of service • Retirement • Financial hardship
Withdrawals prior to age 59½ may be subject to a 10% penalty tax unless rolled over to an IRA or eligible employer plan.
to 3%
Defined Plan
• Very expensive • Retirement of the past • State System
Defined Contribution
• Employee stock ownership—company allocates number of shares to employee
Taxes are taken from the 401(k) account upon withdrawal.
This is a hypothetical example for illustrative purposes only and not meant to represent the investment return of any of your plan’s options. Your situation will vary.
Source: U.S. Census bureau at
Welcome
Info
Why Save Benefits
Process
Your Role
Your companyi match
For every dollar you contribute up to 6% of pay
No taxes along the way
PAT
$100/month 401(k) plan
$150,030 $117,955
CHRIS
$100/month
taxable account outside the plan
Year
Year
1
30
Both invest over a 30-year period, assumes an 18% tax rate, earn an 8% annual return, compounded monthly.
Plan contribution limits
This is for illustrative purposes only and not meant to represent the return of any of your plan’s investment options. Your situation will vary.
Lower current taxable
Info
Introducing Today
Process
Your Role
Social Insecurity?
1940 16.5 workers per Social Security Recipient
2005 3.3 workers per Social Security Recipient
Source: Social Security Administration, 2006 OASDI Trustee Report
• Deferred profit sharing—company contributes an amount of profits each year
Company Makes Decision
• Decides to Offer • Decides on Matching Contribution • Decides on Safe Harbor v. Regular • Create a 401 (k) Committee • Picks Provider
Chief Duties of Retirement Plan
Committees
• ADMINISTRATION • Design plan. • Choose and monitor third-party record keepers, other service providers. • Ensure government compliance. • Amend plan document as needed. • Handle employee communications. • Decide benefits claims and appeals. • Provide for financial education. • INVESTMENT MANAGEMENT • Write and ensure adherence to investment policy statement. • Choose specific investments or recommend them to full committee. • Hire and monitor investment managers, other service providers. • Review investment performance and make changes as needed.
Now add the match [100%]
10 years
$31,824
20 years
$102,590
30 years
$259,947
Assumes a $20 weekly contribution, 100% match, and an 8% annual return compounded monthly
See sample Fiduciary Service Timeline
Good Advice from HR Magazine about Committee Responsibility
• These nuts and bolts of setting up and running a committee may not be glamorous, but the devil is in the details. Following the three P’s—prudence, process and procedure— can result in a well-functioning committee that provides the best retirement plan for participants while insulating top executives from legal liability.
404C Compliance
• Very Critical to HR Field • Erisa Section 404 (C) provides limited
fiduciary relief to plan sponsors, assuming participants can exercise control over their accounts. • EMPLOYERS MUST EDUCATE BUT CAN NOT GIVE INVESTMENT GUIDANCE AND/OR ADVICE
Welcome
Info
Why Save Benefits
Process
2030 2.2 workers per Social Security Recipient
Your Role
Social Insecurity?
• People are living longer i
• Most likely, you will enjoy 20-30 years of retirement
Did you know?
According to the U.S. Census Bureau, in 2005 there were over 70,000 Americans age 100 and older.
This is expected to increase to 1.1 million by 2050.
ห้องสมุดไป่ตู้
401 (K) Basics
What you should and need to know!
What is a 401 (k) Plan
• Enron crash and people running around saying 401 (k) was a bad idea
Retirement
What we’ll cover today
• Info
– Why save and the benefits of your plan
• Process
– How to make the plan work for you
• Your role
– What you need to do
Welcome
• Defined Benefit Plan For example State Retirement System based on last 3 years salary average * the number of years of service as a percentage
• Defined Contribution Plan—401k • Typical match is 50 cents on the dollar up
Agenda
• Review Exams • Talk about Applied Knowledge and Goal
moving forward • Overall Goal of a 401 (k) Plan • Company Responsibility • HR Responsibility • Individual Responsiblity • Exercise
Investment Policy
• State what the overall goal of the company is in offering the 401 (k) and how it will be administered
• Should have an investment committee
income
Ed’s 6% Regular Savings*
Jane’s 6% Plan Savings
$25,000 0
25,000 -3,750 -1,913 -1,500
$17,837
annual base wage pretax contributions pay subject to income tax tax** Social Security regular savings spendable income
The company makes a $1.00 contribution to your account
Vesting schedule
• Your entitlement to the employer’s contribution portion of your account
– You are immediately Vested 100%
Jane’s taxable income is lower, resulting in $225 more in spendable income than Ed
*An investment in a savings account at a bank may be FDIC insured; an investment through the plan is not. **This example assumes a 15% tax rate. This is a hypothetical example for illustrative purposes only, your situation will vary.
Flexible withdrawals
• Termination of service • Retirement • Financial hardship
Withdrawals prior to age 59½ may be subject to a 10% penalty tax unless rolled over to an IRA or eligible employer plan.
to 3%
Defined Plan
• Very expensive • Retirement of the past • State System
Defined Contribution
• Employee stock ownership—company allocates number of shares to employee
Taxes are taken from the 401(k) account upon withdrawal.
This is a hypothetical example for illustrative purposes only and not meant to represent the investment return of any of your plan’s options. Your situation will vary.
Source: U.S. Census bureau at
Welcome
Info
Why Save Benefits
Process
Your Role
Your companyi match
For every dollar you contribute up to 6% of pay
No taxes along the way
PAT
$100/month 401(k) plan
$150,030 $117,955
CHRIS
$100/month
taxable account outside the plan
Year
Year
1
30
Both invest over a 30-year period, assumes an 18% tax rate, earn an 8% annual return, compounded monthly.
Plan contribution limits
This is for illustrative purposes only and not meant to represent the return of any of your plan’s investment options. Your situation will vary.
Lower current taxable
Info
Introducing Today
Process
Your Role
Social Insecurity?
1940 16.5 workers per Social Security Recipient
2005 3.3 workers per Social Security Recipient
Source: Social Security Administration, 2006 OASDI Trustee Report
• Deferred profit sharing—company contributes an amount of profits each year
Company Makes Decision
• Decides to Offer • Decides on Matching Contribution • Decides on Safe Harbor v. Regular • Create a 401 (k) Committee • Picks Provider