NTSA Unveils 403(b) Plan Enhancement Guide

The NTSA has unveiled the "403(b) Plan Enhancement Guide," a new white paper that highlights opportunities that can help increase participation and savings for the nation’s public education professionals. The new white paper builds on the NTSA’s 2018 survey of public education 403(b) retirement plans, “Improving Retirement Savings for America’s Public Educators,” and offers suggestions on how to further improve the 403(b).

The paper argues that employers should pay attention to plan design decisions, which can benefit both participants and plan sponsors. “Increased employee financial health equates to increased employer financial health and operational efficiency,” according to the paper. “By focusing on available plan design options, an employer can save money while providing for additional savings for their employees towards retirement.”

Specifically, the "403(b) Plan Enhancement Guide" suggests that an employer review four key plan design opportunities:

1. automatic enrollment
2. match programs
3. retirement education programs
4. special pay plans

The white paper outlines how each of those plan features work. It also discusses positive impacts for both plan participants and their employers from these design initiatives, including:

• increased participation and savings rates;
• a higher number of financially secure employees who stay longer and are happier and more productive;
• enhanced value of benefits, as well as improved ability to attract and retain valued employees; and
• providing budget flexibility and tools for employees who are nearing retirement in managing outlays.

“Improving employee financial health contributes to increased employer financial health and operational efficiency,” notes NTSA Executive Director Brent Neese. “By focusing on available plan design options, an employer can save money while providing for additional savings for their employees towards retirement, ” he adds.

The announcement comes as 403(b) Day, an event that recognizes the importance of 403(b)s and the contributions of those who administer them and make them available, approaches on Sept. 6.

Copies of the new NTSA white paper, “403(b) Plan Enhancement Guide,” are available at www.ntsa-net.org; you can also click here.