The third part in our four-part series on Plan Design explores how to tailor your retirement plan to your workforce.
In this episode, we’re turning our attention to eligibility provisions, an essential component of plan design that influences both employee participation and retention. Deciding when employees become eligible to participate in the plan depends on the unique needs of your organization.
For companies with higher turnover, extending eligibility requirements—such as a 3-month, 6-month, or even 1-year waiting period—can ensure participants are committed before they join the plan. On the other hand, in a competitive job market, immediate eligibility for contributions can serve as a powerful recruitment and retention tool, making your organization more appealing to top talent.
You can even set separate eligibility requirements for employee contributions and employer contributions, allowing flexibility to balance employee needs with organizational goals.
Want to learn how eligibility provisions can enhance your retirement plan? Our team is here to help you with plan design that works for your employees and your company.
Curious about the full list of eight considerations for effective plan design? Click here to download the PDF.
