Small Business,
Big Impact

TRANSAMERICA’S RETIREMENT PLAN EXCHANGE®:
A RETIREMENT SOLUTION FOR SMALL BUSINESSES

Let's show your employees how important the future is

70% of Millennials say traveling is their No. 1 retirement dream, compared to 64% of Gen Xers and 59% of Baby Boomers.

NONPROFIT TRANSAMERICA CENTER FOR RETIREMENT STUDIES®1

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After over 100 years of empowering people to feel better about their future, we understand that sponsoring and maintaining a retirement plan for a small business can be challenging. And the way we see it, our responsibility goes far beyond offering retirement plans. We make wellness a central part of everything we do – and strive to inspire you to do the same – because we want you and your employees to charge toward retirement with a healthy balance sheet, and a healthy heart to match.

WHAT IS THE RETIREMENT PLAN EXCHANGE®?

The Retirement Plan Exchange (the Exchange) is a solution for small- to mid-sized businesses that allows you to offer the comfort and longevity of a retirement plan to your employees. We designed the Exchange to reduce your administrative burden, transfer certain risks, and reduce the overall plan cost.

The Exchange brings together a team of professionals on your behalf so you can focus on what matters most.

HAVE AN EXISTING PLAN?

You can still experience all the benefits the Exchange has to offer. Ask about a retirement plan conversion consultation.

75% of workers at small companies expect to rely on retirement accounts – 401(k)s, 403(b)s, IRAs – as a source of income in retirement. They say their top financial priority is saving for retirement.

NONPROFIT TRANSAMERICA CENTER FOR RETIREMENT STUDIES®1

HOW THE EXCHANGE CAN BENEFIT
YOUR SMALL BUSINESS

THE EXCHANGE IS DESIGNED TO OFFER YOUR SMALL BUSINESS FOUR PRIMARY BENEFITS WHEN IT COMES TO RETIREMENT PLANNING:

  • Retirement readiness.
  • Fiduciary risk mitigation.
  • Administrative relief.
  • Cost-effectiveness.
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SMALL BUSINESS OFFERINGS

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    RETIREMENT READINESS We’re living longer than ever. But how can we make sure those extra years are good ones? Workers say they will need to save at least $500,000 to feel financially secure when they retire, and having a retirement plan makes a significant difference in their abilities to save. Two-thirds of workers who don’t have a retirement plan have less than $1,000 in savings.2 The Exchange is one way that you can help your employees and their families in their quest for retirement readiness—by providing them with a savings vehicle like a 401(k) plan. When workers stay in the workforce longer or delay retirement, there are ramifications for employers and society as well. Nonprofit Transamerica Center for Retirement Studies® found that the majority of workers (54%) plan to retire after the age of 65 or do not plan to retire at all.1 With the Exchange, employers have an opportunity to help their employees prepare for retirement as well as to transition into retirement.
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    FIDUCIARY RISK MITIGATION The Exchange is comprised of professional service firms that will assume certain fiduciary roles on your behalf. Fiduciary responsibility can be thought of as a relationship imposed by law where someone has voluntarily agreed to act in the capacity of a “caretaker” of another’s rights, benefits, and retirement plan assets. The fiduciary has a legal obligation to carry out its plan responsibilities with the highest degree of prudence, good faith, honesty, integrity, service, and undivided loyalty to the beneficiaries’ interests—in this case, retirement plan participants. The Exchange will assume a fair amount of fiduciary responsibility on your behalf.
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    ADMINISTRATIVE RELIEF The time it takes to manage a retirement plan can really add up, and underestimating that time commitment is a common mistake of many employers. Small employers typically don’t have the resources to effectively manage the complex requirements of offering and administering a qualified retirement plan. The Exchange will allow for outsourcing of all plan administrative duties – a benefit typically only available to very large corporations. Tasks such as annual nondiscrimination testing, employee eligibility tracking, contribution limit tracking, distribution of Summary Plan Descriptions, and other notices will be offloaded.
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    COST-EFFECTIVENESS There’s strength in numbers. By teaming up with other small businesses under the Exchange, you can benefit from certain economies of scale and seamless processing that help reduce the costs associated with operating and maintaining a retirement plan.

HOW THE EXCHANGE WORKS

Sponsoring a 401(k) retirement plan brings with it many responsibilities. When you sponsor a retirement plan under the Exchange, you become a participating employer. The Exchange pulls together seven important parties to help you manage your retirement plan.

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80% of workers in small companies say people in their generation will have a much harder time achieving financial security compared to their parent’s generation.

NONPROFIT TRANSAMERICA CENTER FOR RETIREMENT STUDIES® 1

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