Industrial Fabrics Association International (IFAI) has launched the new Textile Industry Retirement Plan, a benefit exclusively for IFAI members.
Andrew Aho, IFAI vice president of new business development, describes why members should consider the plan and the many advantages it offers.
Q: How does the Textile Industry Retirement Plan work?
A: The Textile Industry Retirement Plan is a multiple employer 401(k) plan for IFAI members. Member companies can participate in the plan by moving their current retirement plan into the Textile Industry Retirement Plan. If a member company does not have a retirement plan for employees, it can create one under the umbrella of the plan. The Textile Industry Retirement Plan acts as one large plan and is treated as such from a government reporting perspective.
Q: What are the primary benefits of the plan for members?
A: Members will save time and money. When an IFAI member adopts this plan, many of the administrative chores will be taken care of. For example, they would no longer have to file a Form 5500 with the IRS, as required with a stand-alone plan. Companies that currently have an annual plan audit would no longer be required to do so—resulting in additional time savings, less hassle and material cost savings.
Member companies without a current 401(k) plan can offer one to their employees without the overwhelming administrative burdens associated with starting up a stand-alone plan.
Additionally, when most of the administrative duties are the responsibility of the plan, it greatly reduces an owner’s personal and corporate liability.
Q: What do you consider the greatest advantages of this retirement plan?
A: One is the buying power to achieve cost savings on investments.
Flexibility is another advantage. This plan will work with Safe Harbor, Roth and profit sharing. It includes the flexibility of a stand-alone plan but eliminates administrative burdens and expenses of sponsoring a stand-alone plan.
It also has a competitive suite of investment options and customizable plan design options involving eligibility, matches and vesting schedules. You determine eligibility, if your plan will have an employer match and what vesting schedule your plan will have.
Q: What does a company gain by offering a retirement plan?
A: It helps companies retain good employees. The employment market continues to be very tight, and offering a retirement plan benefit is a good recruitment tool. Ultimately, both the employer and employee benefit from participation.
Q: Why did IFAI decide to implement this member benefit?
A: IFAI explores a myriad of member benefits. We are always looking to bring more value to IFAI members. The Textile Industry Retirement Plan brings extra value by saving members money and taking care of administrative burdens. Just as an employer wants to retain employees, IFAI wants to retain members. This benefit, and all the other benefits IFAI offers, bring substantial value to IFAI membership.
Q: How does someone implement the retirement plan for their company?
A: IFAI is working with Transamerica for this program. IFAI members can request an analysis of their current plan to see if moving to the Textile Industry Retirement Plan is beneficial. Even if the member chooses to stay with their stand-alone plan, this plan review can be a huge benefit.
If an IFAI member does not offer a retirement plan and is interested in providing this employee benefit, Transamerica can help create one.
For more information, contact:
Transamerica Retirement Solutions
Regional Vice President
+1 319 721 3885
By Amanda Oelke, IFAI marketing and editorial intern.