DelGallo.com Wealth Management Essentials - Financial Education and Employer Compliance
By LEONARD J. DEL GALLO JR., M.S., MPASsm, CFP®
(www.DELGALLO.COM) Del Gallo Financial Services, LLC
Financial
Education is one aspect of the ERISA (DOL) 404 (c) requirements that is often
not fulfilled by many employers and can create financial, staffing, and legal
issues for an employer from lack of compliance.
“Does your pension plan have a
published schedule of participant information and education events? Is a
document file maintained, containing copies of all communications with plan
participants? At every meeting with plan participants, is a list of attendees recorded
and filed?”(1)
Many employers are under the belief
that providing a pension and health plan at the company is sufficient to
attract and retain quality employees. Others are under the impression that
their insurance agent and/or their broker is providing all the services
required to be compliant with government regulations. In addition, many brokers
and insurance agents are not Certified Financial Planning Professionals ® or
qualified to provide financial education workshops or seminars. It is ultimately
the employer’s responsibility to make sure that their company is compliant with
state and federal laws and ensure there are no ERISA violations or conflicts of
interest. Human resource departments and/or staff members may not be trained or
licensed to provide financial education services and outsourcing is often an
approach that works best!
Just providing benefits to employees
may not be enough! Please have your human resource officer or company fiduciary
representative contact Del Gallo Financial Services, LLC today.
“Financial stress is a common
preoccupation for people this time of year, as many struggle to work out
how to fund a perfect Christmas for their loved ones. Even the more affluent
among us will have their own set of financial worries, such as how they will
secure the finance required to up-size their family home in time for the next
school year.”(2) Employers who offer no support to employees may find employees
less productive or absent more often. Employees may be designated into groups
by an employer to segment certain financial education services to offer if
applicable.
“Research conducted by employee
benefits provider Sodexo Benefits
and Rewards Services earlier this year found that of 760 UK employees ranging
from 18 to 64 year-olds, the age group worst affected by financial stress were
those aged 18-34. Among this group, more than a third of employees claimed
their productivity had been damaged due to money worries, and across the whole
workforce 32% admitted calling in sick due to stress, with 36% stating that
financial pressure was the main reason.”(2)
Many more employers are offering
workplace financial education, covering all manner of topics including how a
mortgage works and student loan management for younger staff, financial
planning for middle-aged workers and retirement planning for older staff, to
make sure their employees have a sense of financial well-being. (2) The
education services may be in the form of seminars, online meetings, in-person
meetings, phone access or other designs that may work best in some office
settings. These financial education services need not be expensive and many
companies provide discounts or cost sharing for education services outside of
their company’s general compliance requirements.
Any
questions please contact Del Gallo Financial Services, LLC by visiting our
website at https://delgallo.com/. Del Gallo Financial Services, LLC can arrange an
educational seminar or workshop for your organization’s members and/or
employees. This research commentary is intended to educate families so
they may gain an introduction to a difficult planning topic and is not intended
for any other purpose. Articles created by Len Del Gallo Jr., may not be
copied or used without written permission from Len Del Gallo Jr. Please
note that some information may be protected by copyright laws. Del Gallo
Financial Services, LLC and its’ representatives do not provide tax or legal
advice. Please consult your tax advisor or attorney for guidance on such
matters and before implementing any strategies and/or updates to your
planning. Del Gallo Financial Services, LLC is a Registered Investment Advisor
and Licensed Insurance Agency.
Works
Cited
- SOFA – The Society for Financial Awareness. “2019.
ERISA (DOL) 404 [c] Requirement.” http://www.sofausa.org/legal/erisa
Leonard J. Del Gallo Jr., Broker Associate in Connecticut & Florida
CT Managing Broker: Berkshire Hathaway HomeServices N.E. Properties
www.bhhsneproperties.com
Office: 172 West Main Street
Avon, Ct. 06001
Please see DELGALLO.com for disclosures. The aforementioned material is a product and service listing and is not intended to be an offer for the sale of securities, insurance, or real estate and is not intented to provide planning or investment advice. Securities are offered by prospectus only. There may be broker dealers, custodians, 3rd parties and their affiliates, investment advisers, and others who may offer the same services for the same fees, lower fees, higher fees, or no fees. Please review all disclosures, agreements, and documents.
The website of https://delgallo-real-estate.blogspot.com/ and DELGALLO.com and related pages on these sites may be registered and subject to copyright protection.
Please note that the information being provided is strictly a courtesy. When you visit a link at any of the websites or ads provided or mentioned on this website, you are leaving this website. Del Gallo Financial Services, LLC and Leonard J. Del Gallo Jr. make no representation as to the completeness or accuracy of information provided at any other websites that you visit. Nor is the company liable for any direct or indirect technical or system issues or any consequences arising out of your access to or use of a third-party website.
<meta name="msvalidate.01" content="B2FC2D0014464E2D5A735470DF9B1904" />
