NJBIA on Thursday unveiled its newest member benefit that helps employers save significant money and boost employee retention in the process by simply taking advantage of NJBIA’s Retirement Solution – a customizable, fiduciary-managed, high quality 401(k) and profit-sharing plan.
This retirement savings vehicle allows business owners to leverage the power of numbers by joining together to access one single qualified retirement plan and trust, often at lower cost than what they would pay to administer their own separate retirement plans.
NJBIA’s Retirement Solution is a Multiple Employer Plan (MEP) administered by the Employers Association of New Jersey (EANJ) and powered by Benefits Consulting Group (BCG). The MEP is governed by the federal Employee Retirement Income Security Act (ERISA), the same as any employer-sponsored retirement savings plan.
“NJBIA is proud to partner with EANJ to offer our members this exciting new benefit that allows them to leverage the pooling of resources so that each participating employer can access top-shelf mutual funds at very low expense ratios,” NJBIA President & CEO Michele Siekerka said.
These premium mutual funds would otherwise be closed to a small- or medium-sized business that on their own don’t have enough employees to generate the high minimum investment thresholds required, Siekerka said. Economies of scale also mean lower costs, she said.
“Members can save thousands of dollars by taking advantage of this opportunity because they will no longer be incurring the expenses, fees, audits and HR time associated with administering their own retirement plans, while at the same time providing for their employees retirement,” Siekerka said.
“We have found that this solution works for a start-up or for an employer with an existing 401K,” said John Sarno, president of EANJ.
In addition to the potential cost savings and access to more investment choices, NJBIA employers participating in the MEP receive enhanced fiduciary support, business tax deductions, and extensive educational support for both employers and employees.
This includes enrollment meetings, annual or semi-annual portfolio reviews and one-on-one reviews of individual retirement standings with a licensed financial adviser.
Siekerka pointed out that employee retirement plans are an important recruitment and retention tool for businesses. Sixty percent of employees are likely to switch jobs for a similar job that offers a retirement plan, she noted.
“Only 50% of the 55 million small business employees have access to a workplace retirement plan, therefore, the businesses that do provide this benefit have a leg up on competitors and are more able to attract and retain the best employees,” she said.
Enrolling in the NJBIA Retirement Solution is fast and hassle-free. Learn more here.
The Employers Association of New Jersey has appointed trustees, including NJBIA, to provide fiduciary functions. BCG is a co-fiduciary and serves as the MEP’s investment fiduciary responsible for fund selection, ongoing monitoring and fund replacement.
Fund selection is subject to a fiduciary standard. Available funds include Vanguard, T. Rowe Price, Fidelity, Franklin Templeton and many more. Fund purchase are commission-free and the MEP is managed for the sole benefit of beneficiaries.