Friends (you do seem like friends now ...) ... I'm CFO for a $170MM company, 500 employees, retailer. We currently have a 401(k) administered by CitiStreet, with investment services provided by Smith Barney. 50% match, against the employee's maximum matchable contributions of 6% of compensation (they can of course contribute over that matchable maximum, up to the statutory limits). 5 year vesting ... 25% after 2 years, then 25% each year thereafter.
Current provider does a poor job all around, and we will be designing a new plan, and implementing as of 1/1/06.
Untouchable (for all practical purposes) ... vesting schedule, matching formula ... would require Board involvement, brain damage ... not likely fertile ground.
Decisions:
Will appreciate your brainstorming thoughts ... what would you want to see in your plan, any suggested administrators, fund suggestions welcome, etc.
Thanks.
Current provider does a poor job all around, and we will be designing a new plan, and implementing as of 1/1/06.
Untouchable (for all practical purposes) ... vesting schedule, matching formula ... would require Board involvement, brain damage ... not likely fertile ground.
Decisions:
- Generally prefer one vendor ... e.g. Merrill Lynch, Wachovia, ...
- High tech interface ... as little involvement by our staff as possible ... rely on technology / 'net to help employees sign up, and manage their accounts.
- Considering a three-pronged approach ... (1) life cycle funds for those who want to keep it simple, (2) a list of low cost mutual funds, mostly indexes (likely mostly Vanguard), with plenty of international funds, fixed income funds and a T-bill money market fund for those heading for the trenches, and (3) self-managed brokerage account, for those who feel competent enough to research, buy and manage individual stocks, bonds, etc.
- Considering using Willis on a consulting basis for RFP, counsel re: design, etc. ... rather like a fee-based planner ... they will have no opportunity to particpate in commissions. (I know ... be careful). Yes, I / we could research and manage ourselves ... too many competing projects more critical, frankly.
Will appreciate your brainstorming thoughts ... what would you want to see in your plan, any suggested administrators, fund suggestions welcome, etc.
Thanks.