15. Retirement

INTENT

The intent of the Retirement Indicator is to help employees save income for their retirement years through the use of easily accessible and well-structured retirement plans.

METRICS

Level 1

1. Organization has a written policy on employee retirement provisions.
   

Level 2

1. Organization has a written policy on employee retirement provisions.
2. Organization demonstrates it provides access to financial advising/education services to support employees in making the best decisions for their circumstances and goals.
3. Organization offers a defined contribution plan with auto-enrollment at a default contribution level of 3% and immediate eligibility.
   

Level 3

1. Organization has a written policy on employee retirement provisions.
2. Organization demonstrates it provides access to financial advising/education services to support employees in making the best decisions for their circumstances and goals.
3. Organization’s retirement plan offers options to choose investments.
4. Organization offers a defined contribution plan with auto-enrollment at a default contribution level of 5%, immediate eligibility, and an employer contribution of at least 3% of the employee’s salary.
   

Level 4

1. Organization has a written policy on employee retirement provisions.
2. Organization demonstrates it provides access to financial advising/education services to support employees in making the best decisions for their circumstances and goals.
3. Organization’s retirement plan offers options to choose investments.
4. Organization provides options for employees to participate in a retirement plan while paying off qualified student loans in lieu of their individual contribution.
5. Organization offers a defined contribution plan with auto-enrollment at a default contribution level of 5%, auto-escalation of 1% per year (capped at 10% per year), immediate eligibility, and an employer contribution of at least 5% of the employee’s salary.
   

ALTERNATIVE COMPLIANCE PATH – Employee Stock Ownership Plan (ESOP)

Level 2

1. Organization has a written policy on employee retirement provisions.
2. Organization demonstrates it provides access to financial advising/education services to support employees in making the best decisions for their circumstances and goals.
3. Organization has an ESOP.
   

Level 3

1. Organization has a written policy on employee retirement provisions.
2. Organization demonstrates it provides access to financial advising/education services to support employees in making the best decisions for their circumstances and goals.
3. Organization offers a defined contribution plan with auto-enrollment at a default contribution level of 3% and immediate eligibility.
4. Organization has an ESOP.
   

Level 4

1. Organization has a written policy on employee retirement provisions.
2. Organization demonstrates they provide access to financial advising/education services to support employees in making the best decisions for their circumstances and goals.
3. Organization’s retirement plan offers options to choose investments.
4. Organization offers a defined contribution plan with auto-enrollment at a default contribution level of 5%, immediate eligibility, and an employer contribution of at least 3% of the employee’s salary.
5. Organization has an ESOP.
   

ALTERNATIVE COMPLIANCE PATH – Defined Benefit Plan

Level 4

1. Organization has a written policy on employee retirement provision.
2. Organization offers a defined benefit plan.
   

SUMMARY TABLE

Table 15a – Retirement Metrics