The Social Security Administration Offers Beneficial Retirement Planning Program

Ongoing education better prepares employees for retirement

The Profit Sharing/401k Council of America has long promoted the importance of communicating with and educating employees about the benefits of profit sharing, 401(k), and related employer-sponsored defined contribution programs. Ongoing communication and education programs can help employees better prepare for their life after work and enjoy the best retirement possible. 

PSCA recently learned about an exciting program offered by the Social Security Administration that could help enhance retirement planning communication and education at your company. The Social Security Administration has a public affairs arm, and their job is to speak at companies about retirement planning and preparation. 

Recently, PSCA member company McGuireWoods LLP took initiative and hosted an all-day retirement planning event. As part of this event, McGuireWoods LLP invited a representative from the Social Security Administration to speak to their employees as part of their day-long “Pre-Retirement Planning” program. The meeting took place at the McGuireWoods LLP office in Chicago, Illinois. All employees aged 50 or older were invited to attend the meeting. They were also asked to bring their spouses. 

To contact the Social Security Administration about having a representative speak at their meeting, McGuireWoods LLP filled out a form on their Web site, www.ssa.gov. Shortly afterward, the local public affairs expert from the Social Security Administration contacted McGuireWoods LLP about their meeting.

Meeting Explains Benefit Details
At the McGuireWoods LLP meeting, the presenter from the Social Security Administration discussed a little bit of the history of Social Security, described how Social Security is funded, and the types of Social Security benefits that are available. She then explained how a person’s benefit is calculated. She talked about how a spouse can receive benefits, and she talked about Medicare — specifically, when to sign up, what someone must pay, and other details. The Social Security Administration representative then answered many questions from the McGuireWoods LLP employees and their spouses. 

McGuireWoods was so pleased with the presentation by the Social Security Administration representative that not only did they hold this meeting in Chicago, but they also scheduled two meetings at their offices in Richmond, and they will be doing meetings in McLean, Virginia, and Charlottesville, Virginia, later this month. Although the Web site seems to indicate a group of at least 50 participants is required for a representative to speak at a meeting, all of the local Social Security Administration offices have agreed to participate in McGuireWoods LLP’s meetings even though they have not had 50 participants. 

As mentioned earlier, the presentation by the Social Security Administration representative was part of a full-day meeting at McGuireWoods LLP devoted to retirement planning, so they also invited a speaker from their plan service provider to attend. This speaker talked about the time leading up to retirement, how to determine what percent of salary to save, and a little bit about investment diversity.A0Additionally, McGuireWoods LLP invited a representative from their life insurance company to talk about the need for insurance in retirement (depending on individual circumstances), the types of insurance available, and various ways it can be used. Their health insurance broker talked about how a Health Savings Account could be another vehicle to provide post-retirement medical benefits.

Positive Employee Reaction
Overall, McGuireWoods LLP and the employees that attended the seminar were extremely pleased with the presentation and found it informative and helpful. The feedback was very positive. One attendee even declared, “This seminar should be mandatory!” To learn more about the program offered by the Social Security Administration and to contact your local office to schedule a representative to speak at your company, visit their Web site at www.ssa.gov. 

PSCA encourages all of its member companies to explore this opportunity or to set up an informative session for your employees. Creative, ongoing, and effective defined contribution plan communication and education are essential for employees to completely understand the benefits of their profit sharing and 401(k) plans and to prepare for their best possible retirement.

PSCA’s 401(k) Day Program Also Helps Boost Plan Participation
Each year, PSCA hosts 401(k) Day to encourage employers to host events similar to the day that McGuireWoods LLP planned. PSCA provides its members communication and education tools that can easily be customized for your company. This year, PSCA unveiled an exciting new campaign. Because retirement planning is not limited to just one day, PSCA has devised a series of seasonal campaigns to promote ongoing awareness of the valuable benefit of profit sharing and 401(k) plans. The materials are available in English and Spanish for both 401(k) and 457 plans and include step-by-step instructions for plan sponsors. Items available include posters, letters, postcards, and Web casts. The materials can be downloaded from PSCA’s special 401(k) Day Web site, www.401kday.org. 

PSCA also celebrates excellence in communication and education programs through the annual Signature Awards competition. For the past seven years, PSCA has recognized companies that have done an outstanding job of communicating with their employees about various aspects of their plan, such as financial planning and plan conversion. Signature Awards also recognize companies that produce significant measurable results in the number of plan participants or the increase of deferral rates. 

The more employees understand about their employer-sponsored defined contribution program, the more they will participate and see positive results. Communication and education programs, such as the one provided by the Social Security Administration, are key to helping your employees maximize their benefits.