The term “kaizen” is a Japanese word popularized by Toyota decades ago.  It means “continuous improvement” or fixing things even when it’s not broken. This method has allowed Toyota to be one of the top car manufacturers in the world. 

The same goes for employer-sponsored retirement plans. In today’s competitive job market, it is paramount for plans sponsors to offer competitive retirement benefits and look to always improve the design of their retirement plan. So, what are the top retirement benefits employers use to attract, retain and reward employees?

According to Forbes, the best plans offer:

1.     High participation rate. Almost all plan participants were taking part in the best performing plan (95%) compared to less than 80% for other plans.

2.     Smart investment choices. Nearly all of these workplace plans offer low-cost index funds, participant-directed accounts and Roth options.

3.     Automatic enrollment. All of the best plans automatically enrolled employees in their plan, implemented auto escalation every year, and allowed new hires to participate within three months of starting a job.

4.     Financial education offered. In today’s modern day and age, most plan sponsors offer financial wellness programs on top of their competitive plan design.

To accomplish more out of your organization’s retirement plan, we recommend doing the following:

·      Benchmark. Does the level of service you’re receiving coincide with the fees you’re paying? Compare your plan often, as it will tell you if you’re getting the bang for your buck.

·      Analyze plan design. It’s important to evaluate the plan frequently and offer new features.

·      Ask questions. Inform your retirement plan consultant about any changes within the company and ask questions no matter how big or small.

How does your 401(k) or 403(b) plan stack up? Send us an e-mail at mrahman@nesa401k.com or give us a call at 818-275-1556,

A 12-year veteran in all aspects of workplace retirement plan benefits program, Mizan Rahman specializes in the compliance, administration, design, and legal documentation of 401(k), 403(b), and 457(b) plans. Mizan provides high-level, personalized consulting to small and medium-sized businesses and not-for-profit organizations. One of the select few to have been awarded Enrolled Retirement Plan Agent (“ERPA”) by the Internal Revenue Service, Mizan regularly represents clients in front of DOL and IRS during audits.