Did you know? Every 6 years or so the Federal government requires all prototype or volume submitter type retirement plan documents to be ‘upgraded’ or ‘restated’ onto a newer plan document format. This plan document ‘restatement’ allows the most recent governmental retirement regulations to be included in the mandatory updated retirement plan document. This means in 2021 and the first few months of 2022 more than likely your retirement plan document will have to be redone.

What does this mean to you and why is it important? Did you know most TPAs or plan document providers just take your current or existing retirement plan options and design, and write them into the newest plan document format & charge you for this mandatory change? That’s like a car dealership seeing you have a ‘70 Dodge and when it comes time for a trade in giving you the same make, model and current options just on a different newer chassis. They sell you the same options that existed in 1970 without asking you if you would like any newer options in your new car. Ridiculous right? Wouldn’t you at least like to know what those newer options are and at least be given a choice about which options might work better for you and your employees?

At Pension Planning Consultants we specialize in helping our clients understand their plan design and document options. After all, it is their retirement plan and benefit … not ours. Shouldn’t our client choose the retirement plan options that best suit their retirement plan goals?

HINT: It is always a good idea to know the year or version of your current retirement plan document. Pension Planning experts help business owners with all retirement plan needs. We also work for you and help answer any questions that arise.