Plan Sponsors: Is Your Retirement House in Order? Employee Benefit News (05/03) Vol. 13, No. 5 p.E2; Jacobs, Ari
Retirement plan sponsors should be making sure their "retirement house" is in order as their organizations come under more questions from internal and external stakeholders during tough times of underfunded plans, huge contribution requirements, volatile expense costs, and uncertainty among workers over where to invest their retirement savings. To develop an action plan for 2003 and beyond, retirement plan sponsors should be examining the design, cost, and operations of their retirement programs so they can identify areas of concern or opportunities for change. For example, retirement plan sponsors should develop retirement plan objectives that are in line with the goals of the sponsoring organization. Retirement plans may be a strategy organizations use to attract and retain talent, but plan sponsors must examine whether workers are encouraged to participate in the savings plan and are being helped to gain financial security. What is more, retirement plan sponsors should include the offices outside their home country in their retirement programs, which can help reduce inappropriate assumptions and inaccurate accounting standards. Using a consolidated reporting system that includes global assumption verification, retirement plan sponsors can help their organizations improve the quality of their financial reporting.