The Future of 401(k) and Social Security

How do we get a larger potion of the work force to think about the future? Approximately half of large companies offer retirement plans and only about 10% of their employees participate. Should retirement savings be forced on employees? The Administration’s latest initiative would expand automatic enrollment in 401(k) and other retirement savings plans to make it easier for companies, especially those smaller and midsize firms lagging behind their larger counterparts, to sign up their workers and decide whether and how much they should save for retirement Under these plans, employers deposit a set percentage of each employee’s paycheck into his or her retirement account, and the worker could opt out or invest a different amount. The Government initiative will make it easier for employers of all sizes to adopt automatic enrollment by allowing them to rely on pre-approved language issued by the IRS. Currently, plan sponsors typically must first get the agency’s written approval to amend their plans. While this idea may not excite lower income workers, recent research has found automatic enrollment programs go a long way toward helping the nearly 78 million Americans who don’t have a retirement savings plan at work. The Administration says there’s a clear need because fewer than 10% of those without a plan at work formally save for retirement on their own. Another option would be for workers under a certain age to opt out of social security and put the same percentage (or more) in a 401(k) retirement plan. The laws would have to change; under the present social security system, the government prevents the contributions from unconditionally being passed... Read More

IS WHAT YOU DON’T KNOW HURTING YOU AND YOUR BUSINESS?

 There isn’t a Company in the market today that is 100% protected from Employee Lawsuits. What would you do today if you were contacted by the Equal Employment Opportunity Commission (EEOC) stating that an employee has filed a claim against your company? Regardless of the size of your Company you can fall into the status of employees filing claims against you as noted below with Claims filed against Radio Shack: EEOC Wins Jury Verdict Against RadioShack in Retaliation Case 55-Year-Old District Manager Fired Days After He Complained of Age Discrimination; Awarded $187,000 in Back Pay Selected List of Pending and Resolved Cases Under the Age Discrimination in Employment Act (ADEA) DENVER – The U.S. Equal Employment Opportunity Commission (EEOC) won a victory in federal court in Denver yesterday afternoon in its employment discrimination lawsuit against major communications equipment retailer RadioShack. A unanimous jury of nine decided that RadioShack intentionally fired an employee in retaliation for his complaints about age discrimination. According to the EEOC’s suit, in the fall of 2007, David Nelson, then 55, had been employed for more than 25 years when RadioShack assigned a new, 43-year-old regional manager to supervise him. Within four months of the new supervisor’s arrival at the regional office in Denver, Nelson, who had a spotless performance record, was placed on two performance improvement plans. Nelson believed that he was being discriminated against by his new supervisor because of his age and he complained to the human resources department about the discrimination. Within five days of the first complaint, before the period for assessing the improvement in his performance had expired, RadioShack terminated... Read More