We’re excited to announce a new user interface and navigation for plan administrators. Along with that redesign, plan administrators will also have access to a brand new feature – reporting for plan administrators! This feature will provide plan sponsors with additional insights and leverage to better engage employees and manage their 401(k) plans.
Why do I need 401(k) reporting?
In order to monitor and enhance 401(k) plans, administrators need access to the data that will illuminate potential areas for improvement. With reporting, administrators can make informed plan design decisions as well as positively influence plan participation and employee contribution rates by focusing on the specific employee groups that might need prompting in a given direction. Better insights empower administrators to drive better results in their 401(k) plan.
What reporting will I have access to?
With Human Interest, you’ll have access to customizable reporting, which details employee demographic, employment, and investment data. You’ll also have instant access to six standard reports out of the box:
Non-Participating Eligible Employees
Identify employees who are eligible to participate in the 401(k) plan, but aren’t taking advantage of the opportunity.
Terminated Employees with a Balance
Note any terminated employees who still carry a balance in the plan, along with their contact information.
Automatically-Enrolled Employees
Determine which employees have been automatically enrolled as well as when they were enrolled.
Contribution Rate Changes
Pinpoint employee contribution rate changes within a customizable timeframe.
Current Contribution Details
View a snapshot of the current employee contribution elections, year-to-date contributions, and highly-compensated employee status.
Investments Breakdown
Examine the current allocation of assets in the plan, broken down by fund and asset type.
How can I use reports to maintain a healthier 401(k) plan?
Each report will provide different insights into how your employees are utilizing your plan. Below, you’ll find some ideas on how to leverage these reports:
Non-Participating Eligible Employees
Once you’ve identified which eligible employees are not taking advantage of the plan, you could send a targeted email to them with an overview of the plan benefits, or schedule an informative webinar with our account services team. If participation in the 401(k) plan is low, you can also consider plan-level changes, such as adding an employer match or adding an automatic enrollment provision to encourage employees to join.
Terminated Employees with a Balance
With Human Interest, once an employee is terminated, they automatically receive information about what they can do with their 401(k) balance. If the employee doesn’t take action, they may have forgotten about their lingering assets in your plan. Once you note which terminated employees carry a balance, you can remind them of their options. Additionally, if there are a number of terminated employees carrying a balance less than $1,000, it may be worth considering an involuntary force out in order to keep plan costs low.
Automatically-Enrolled Employees
Once an employee is automatically enrolled in the plan, they often don’t consider their contribution elections going forward. In addition to the annual notice requirements, plan sponsors can take a proactive approach with their automatically enrolled employees, reminding them of the benefits of saving in a 401(k) plan.
Contribution Rate Changes
Plan administrators are responsible for ensuring that employee deduction elections are maintained in their payroll within a timely manner. With our reporting, you’ll be able to audit the changes that have been made within a specific timeframe to make sure that is accurately reflected.
Current Contribution Details
A key indicator of your 401(k) plan’s health is the average amount employees are contributing to the plan. With this information, you’ll be able to identify employees who are potentially missing out on employer matching contributions and help them understand the value of the plan.
Investments Breakdown
With the Investments Breakdown report, you’ll be able to see Human Interest’s automated advising services at work. Employees who are opting into the automated asset allocation will see a diversified portfolio.
In order to maintain a healthy plan, administrators need to have the necessary data to understand their employees’ needs and behaviors. Interested in learning more about what you can do with reporting? Click here to chat with one of our team members.
Article By
The Human Interest Team
We believe that everyone deserves access to a secure financial future, which is why we make it easy to provide a 401(k) to your employees. Human Interest offers a low-cost 401(k) with automated administration, built-in investment education, and integration with leading payroll providers.