Every now and again we like to have guest bloggers talk about the nitty-gritty stuff Reading Rainbow style. ("You don't have to take MY word for it!")  We've got another guest blog that you should find helpful, especially if you're in the GovCon (Government Contracting, for those not in the know) world. Alan Luba of Human Resources Consultants LLC is weighing in here on some of the more common issues with benefits and pay. You can reach him at alanluba@verizon.net should you have more questions.

Every now and again we like to have guest bloggers talk about the nitty-gritty stuff Reading Rainbow style. ("You don't have to take MY word for it!") Here's Chris Oneal from Stones River Consulting giving you the skinny on why you're going to be asked to re-state and re-sign all of your plan documents in the next 18 months. --RP

1)        Have a sound reason for changing to a new provider. That reason could be: improved service, less administrative burden, better tools and resources for participants, more plan sponsor support services, more access to a broader range of investments, and so on. 

I meet with a lot of folks in the investment advisor and broker community. It never ceases to amaze me when they inquire how our practice is set up and how we manage to "make money" servicing retirement plans. Usually it's coming from a competitor who dabbles in our space citing the time they spend on it, or one who thinks they want to "get into the retirement plan business." I'll tell you how we do it and I'll tell you why you shouldn't hire a generalist to serve as your retirement plan's advisor.

A company requested that we submit a proposal for performing investment due diligence. They had searched for a new plan provider and wanted to compare the proposed investment lineup that the provider was suggesting against the investments in their current plan lineup to determine whether to switch. They were seeking proposals for this service from several advisors, I'm sure.

1)  Not monitoring providers on a regular basis. No matter what, you’re still to blame for oversight. Hiring a prudent expert or a vendor takes work away and shares responsibilities, but you will always maintain the responsibility to make sure they’re qualified and doing their job.

1)  Starting a retirement plan without knowing all the options. 401k, SIMPLEs, and SEPs, oh my! Each type of plan has strengths, weaknesses, and impacts your budget differently. Make sure you know and understand all of your options when selecting the plan type and long-term impact! Beware of payroll sales people who say "Would you like a 401k with that?" This is not McDonalds where you're adding fries to your combo meal.

I get asked a lot of retirement plan questions, and this was a doozy. Who's to blame when you can't find the records of contributions and earnings in a Roth and all you want to do is pull out what you contributed?

I'm totally blessed with awesome clients who walk their walk and talk their talk when it comes to their mission statements and creating fabulous workplaces. This past Sunday I got to hang out with one of them during their annual benefits fair. I say "benefits fair," but that sounds like a room full of booths with employees begrudgingly being ushered through to get a free stress ball and water bottle to make the HR manager happy. I normally despise these things because it's a bunch of standing around for hours on end hoping employees will show up. (I've considered dressing up in costume or having a karaoke machine to make it more fun amongst all the other things we do to make our booth attractive and fun.)

I know, we're focused on retirement plans here at Retirement Planology, but I have to write about this. Having seen first hand where a payroll company really botched things up and caused a lot of problems, I feel it's important to share what I know and pull some info from our friends in the payroll world.

I am often asked what it is that a Retirement Plan Advisor does (we call them Retirement Planologists™ at our company). First, it's important to know that a retirement plan advisor works with a company to help them build and manage their company's retirement plan for their employees. (That's a very different thing than helping an individual plan for their retirement, which is what a financial planner/financial advisor does.) A Retirement Plan Advisor probably specializes in pensions, 401k, 403b, 457 and other plans provided by employers, and they may even have certain designations or credentials specific to employee retirement plans, such as the Accredited Investment Fiduciary or the Chartered Retirement Plan Specialist.

It's important that your company's internal procedures actually reflect those of the retirement plan document! Here are some examples.

Searching for a new vendor to handle your retirement plan is a pain. Here’s some unsolicited advice.

This is a question we receive frequently when meeting with employees about their 401k plan. Hopefully this guide will help you know better where to go and what to do to retrieve your old 401k account or provide guidance to employees who are asking for your help in finding their old account.

A company match is a fantastic thing to offer your employees in a defined contribution (like 401k or 403b) plan. There are numerous studies that have shown that participation increases significantly when a match is offered, which will eventually turn into more people getting on the right track to be able to retire someday.

One of the perils of making “too much” money, or rather, hitting the IRS’s ceiling for the 401(a)(17)/404(l) compensation limit, is that you likely won’t be able to put enough money in your company’s retirement plan to fully fund your retirement.  (In other words, if you make more than $250,000, this generally applies to you.)  Discrimination testing in 401k plans often leads to the highly compensated employees being limited to how much they can contribute, so in addition to already being mathematically unable to save enough even if they max out (2013 max is $17,500 or $22,500 if you’re 50+), now they’re even more behind.  What to do?