Encourage employees to save in the Retirement Savings Plan with an employer match

April 09, 2019
If you're not yet offering an employer match, or are thinking of increasing your existing match, here are some things to consider.

By offering an employer match, you can encourage employees to save — or save more — in the Retirement Savings Plan of the Presbyterian Church (U.S.A.) (RSP).

Not yet offering an employer match, or thinking of increasing your match? Here are some considerations:

  • How a match is offered can affect how much employees contribute to the Retirement Savings Plan without affecting your budget. For example, instead of offering a 100 percent match on the first 3 percent saved, offer a 50 percent match on the first 6 percent saved. That may encourage employees to save a higher percentage of pay for retirement, at the same dollar cost to you.
  • An employer matching contribution is not considered part of effective salary, so the cost to you for dues-based benefits (such as medical coverage in Pastor’s Participation or Pension Plan participation) is not affected.
  • To add or modify an employer match, you need only communicate with employees and send/update remittances to Fidelity Investments, the administrator for the Retirement Savings Plan, on an employer-specific basis. You do not need to revise your Employer Agreement. When you completed your Employer Agreement through Benefits Connect, and indicated that you offer the RSP to each benefit group, you automatically adopted the RSP.

You can make a fixed, non-matching employer contribution to the RSP instead of, or in addition to, a matching contribution. Non-matching employer contributions are considered part of effective salary, included in dues calculations, and should be reported through Benefits Connect under the Manage employees tab. Just select the member, click the Change Salary button, and note the dollar amount in the Employer contributions field, with other compensation components.

For more information, call the Board of Pensions at 800-773-7752 (800-PRESPLAN), or call Fidelity Investments at 800-343-0860 (mention plan #57887).