Sylvie Steiner works for a nonprofit and was asked by the executive director of the organization to
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Sylvie Steiner works for a nonprofit and was asked by the executive director of the organization to chair a task force with the purpose of increasing participation in the organization’s 403(b) plan.
The emphasis on the 403(b) plan will serve as a key employee retention tool for the organization. Currently, many part-time staff are unaware they’re eligible to participate in the plan not to mention the generous employer match. As a member of the task force, you’ve been assigned the following tasks:
- Assess the current enrollment process.
- Determine issues with the current process.
- Identify ways to streamline the current enrollment process.
Current Enrollment Process
- After you have completed 1 year of qualifying service, you can complete the 403(b) enrollment form and participate in the plan. Once enrolled, the plan will deduct 1% of your pay and match 1% with an additional 2%.
- These contributions will be defaulted to an account with the plan provider and invested in a Target Retirement Fund, based on your current age and assuming a retirement age of 65.
- You can contribute from 1% to 100% of your eligible pay, up to the annual IRS dollar limits.
- If you have reached age 50 or will reach 50 during the calendar year and are making the maximum plan or IRS contribution, you can make additional catch-up contributions.
- You can select from a three-tier investment line-up, which includes:
- Target date retirement funds
- Passively managed funds
- Actively managed funds
Document your work in a 700- to 1050-word report.
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