Our view is that a 401(k) plan should be an investment in your business, and established as a compensation planning tool instead of an entitlement program. While making this transition we seek to optimize the benefit for the business owner, provide innovative consulting and deliver a manageable solution designed to achieve this goal.
Design optimization is simply redesigning your 401(k) plan to maximize the benefit for the business owner and minimize the obligations to the staff employees. Most plans are delivered by financial advisors who may understand investment selection and expense management, but have very limited knowledge of what plan design really means. An effective redesign of your 401(k) plan doesn’t end here.
Achieving the desired end result also encompasses two additional elements; innovative consulting and a manageable solution.
For the past 30 years the plan design has been simple, if you defer x then you receive a matching contribution of y. This outdated, ineffective design doesn’t maximize contributions for the business owner or key employees. Through interactive meetings and ongoing dialogue, we work with you to help you identify the employees who are key to the long-term success of your organization. Once we have identified the key employees we customize benefits and contributions that are tailored to each individual employee.
The final element in redesigning your 401(k) plan for optimized benefits is to deliver a manageable solution. We understand that most firms don’t have the expertise to design and implement creative, innovative plan designs. This is especially problematic for small plan sponsors and to a lesser degree large plan sponsors.
For small plan sponsors DCM offers an integrated, customized solution that delivers optimal savings for the business owner while minimizing plan expenses. Understanding that significant design changes can be disruptive to larger organizations, DCM can manage the flow of information to incumbent service providers to insure the redesigned plan objectives are achieved.
Contact us to see how DCM can deliver a redesigned solution for your company’s 401(k) plan.