A Low-Cost Benefit

Benefit: Provides retirement income for employee & employee's family.

Rates are determined by: Number of employees, size of group, employer's choice of participation, third party charges.

Cost per person: $1.00 per month per person and $50.00 maintenance fee paid to Third party administrator.

Employer cost is optional; the employer can chose any amount to match for each employee.

(Example: Employer may say that they will match 50 cents for every dollar the employee deposits in the plan up to 3% of payroll). This is 1.5% of payroll, a low cost benefit. Employee makes 1500 month x 1.5% = 22.50 + 1.00 = $23.50 per month cost for this employee.

How much should we offer: Max. deposit amount is usually 15% of earned income. (Includes employee and employer contribution.)

Who should pay: Can be employee contribution only, employer contribution only, but we have found a combination of the two will maximize participation.

To provide you with a rate: We need number of employees and basic plan design.