Is There Room For Improvement?
Lobbying for Changes in Your Company’s 401(k) Plan
January 22, 1999—Accepting whatever your
company’s employee-contribution plan has in place today does concern your future.
With a keener interest in how this benefit is or isn’t working towards your
retirement, you may uncover the flaws in a company 401(k) plan that are worth attempting
to change. And, with the responsibility of your financial future resting on your
shoulders, the earlier you seek plan improvements can often make a significant difference
in your final retirement picture.
Westcore Funds, a Denver-based 100% no-load fund family,
realizes the importance in lobbying for plan improvements and offers the following tips as
a resource towards your effort in achieving a financially successful retirement:
Know As Much As Possible—before approaching your plan administrator, gather and read all the
information made available about your current plan. If you have any questions, talk to
your administrator so that you are clear about potentially objectionable areas. In
addition, compare your company’s plan to some others to ensure that your areas of
concern are reasonable. You can contact financial resources in your life (i.e. a financial
planner, 401(k) magazine articles, etc.) or ask friends and family about their
company’s employee-contribution benefits.
Put It In Writing—once you have identified your concerns, take the time to put each issue down in a
letter to your benefits officer so that each point can be addressed. Ask for additional
clarification to be provided if your concerns are based on inadequate information. And,
provide suggestions for improvements to the areas you have outlined. You can always
recommend that your company hire a benefits consultant to compare the costs and options of
your 401(k) plan with others on the market.
Seek Allies In Your Efforts—most likely if there are problems with your company’s
employee-contribution plan others will be concerned too. See if a manager would be
interested in requesting some changes or ask a group of co-workers to also write letters.
If you think it would be helpful, ask your plan administrator to conduct an employee
survey or focus groups to ask all employees for their input on the current plan and
proposed changes.
Share What You Know—along with your letter, pass on information you uncovered regarding other plans.
If you found a particular newspaper clipping, magazine article, or brochure to be helpful,
send a copy to your plan administrator. Also share any facts you have uncovered, such as
the fact that a plan’s administrative costs are tax deductible for the corporation
but not for plan participants.
Don’t Give Up—change usually doesn’t occur without effort. If you meet with some initial
resistance, keep being persistent. As the fiduciary of your 401(k) account, your employer
should be interested in making the company plan the best vehicle possible for their
employees. Remember that executives are relying on their employee-contribution
too—soliciting their support could make your efforts move more efficiently.
Making changes in your existing 401(k) plan may also
include finding some better investment choices. If your employee-contribution plan relies
on mutual funds, don't be afraid to compare their returns, fees, and style options with
other funds in the marketplace. If there are some specific mutual funds you would like to
see added, call and request a prospectus to be forward to your plan administrator. The
steps you take today can make a huge difference in how golden your retirement years will
be!
At Westcore Funds, better research makes the difference.
The 100% no-load Westcore Fund family, based in Denver, Colorado, consists of five equity
funds, three bond funds, and a non-proprietary money market fund. For more information
about Westcore Funds, or to obtain a prospectus containing more complete information
including charges and expenses, please visit us at our web site, www.westcore.com, or call us at 1-800-392-CORE.
# # #
For more information about Westcore Funds, or to obtain
a prospectus containing more
complete information including charges and expenses, please call us at 1-800-392-CORE. Please read the prospectus carefully before you invest or send money. The
investment return and principal value of an investment in the Westcore Funds, as in any
other fund, will fluctuate so that an individual investor’s shares when redeemed may
be worth more or less than their original cost. Westcore Funds are distributed by ALPS
Mutual Fund Services, Inc., member NASD.
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