Do you have a retirement or 401(k) plan for your employees? Are you are bidding prevailing wage and public works projects that require a bona fide benefits program? Did you know you can save on Federal Insurance Contributions Act (FICA) and Federal Unemployment Tax Act (FUTA) taxes by contributing fringe benefit money into a pension?
Although we presently live in an economy where the average American is simply grateful to have a job employees know a job that offers them a good benefits package is one of the reasons to stay long-term with a company. Employers know that they should do what they can to retain their productive dedicated and trained workforce especially once the economy improves. Companies also know that in order to be competitive in these lean times any business tax deductions are helpful. Anything that can be done to minimize the payroll tax burden improves a company’s cash flow.
One of the many reasons why associations exist is to offer various group benefits for their members. In our case the Northwest chapters of AGC have combined efforts to offer a retirement and 401(k) plan exclusively for our members. This is no ordinary off-the-shelf plan; it is specifically designed to meet the unique needs of the construction industry. The Northwest AGC Chapters Retirement and 401(k) Plan may be the solution you need! If you already have another plan in place consider comparing your current fees and plan flexibility to the Northwest AGC plan. You may be pleasantly surprised.
Open to all AGC member companies from the Oregon Washington Idaho and Alaska chapters the association plan has nearly 4000 participants from more than 100 employers with more than $70 million aggregate plan assets.
Options for employers include 401(k) Davis Bacon (prevailing wage) and profit sharing contributions. Employers have the ability to award various classes of employees with different levels of profit sharing contributions and participants may take advantage of a multi-fund approach that offers a full range of investment of options. Employers can create a program for office and salaried employees or project-specific employees with no set-up fees or employer cost outlays. A support team provides individualized plan and fund design and employee education. The professional plan administration offers easy online or telephone access to account information.
Individual participants can pick and choose among 25 participant-directed investment choices including 10 “target date” funds and can make changes and control their portfolios as they wish. The investment choices are strong and consistent and the costs are very low compared to other plans.
The investment fund expenses vary by mutual fund ranging from 0.2 percent to 1 percent. Administrative expenses depend on several factors such as the investment choices the overall employer balance in the program and a set participant fee of $15 per quarter. The total target for administrative expenses is less than 1 percent and fees are generally deducted from participant accounts so there is no direct employer outlay.
Each AGC chapter in the Northwest region has staff and member seats on the Board of Trustees that oversees the Pension Trust. Trustees meet regularly along with the third-party administrators Northwest Plan Services and investment advisors at Reliant Consulting to deliver a superior and competitive program to our members and their employees.
This plan is a breeze for your company to participate in! The professional plan support team makes it easy as can be to get started and to maintain. The Form 5500 tax filing is done for you the trustees take responsibility for the fiduciary duty and oversight of the administration and your accounting department won’t have to deal with monthly billing of employer and employee fees.
The Northwest AGC Chapters Retirement and 401(k) Plan is a fantastic AGC membership benefit that we encourage you to participate in.
For more information contact Kelly Barber at AGC at 206-284-0061 or 800-562-2868.