Achieving plan objectives in today’s environment of constrained budgets and increasingly complex fiduciary requirements is a difficult balancing act. With the right combination of employer match, eligibility and vesting standards and automated plan features, though, a plan’s effectiveness can be improved without busting the plan sponsor’s budget.
Using four scenarios to illustrate, a new white paper from T. Rowe Price does a nice job of showing how costs can be managed effectively when adopting various automatic (and other) plan features by altering plan design elements. In addition, the paper serves as a decision-making guide for designing a plan from scratch and revisiting the design of an existing plan. On the old Must-Read-O-Meter, we’ll give this one a solid “7” on a scale of 1 to 10.
