Many large employers have introduced changes in the retirement plans they sponsor for their employees, but the process of one large SilverStone Group client stands out in our experience. This client very carefully sorted through the conflicting objectives that are often presented in a plan review. From this process they were able to reconfirm and express their objectives. Both the sponsoring company and the plan participants were the beneficiaries of their thoughtful process.
The company gained more control over their annual contribution requirements by lowering future benefit growth in their pension plan while redesigning their employee savings plan to focus more attention on a long-term commitment to retirement security. The changes introduced assure that participants closer to retirement will see no benefit loss (and, perhaps, some possible gain), while younger participants can expect to see retirement benefit increases if they take full advantage of the new features.
And, to ensure that the participants fully understood how the changes could benefit them, the company conducted employee meetings and is introducing a participant website where participants may access current benefit displays to monitor their progress, as well as planning tools that will illustrate the leverage resulting from a long-term commitment to retirement savings.
Throughout the process, the company relied on benefit and contribution forecasts prepared by SilverStone Group to refine the features of both the pension and savings plans. And they turned to SilverStone Group to implement the participant website that will guide the participants toward a secure retirement.
We like to see — and even more, we like to participate — in success stories like these.