EPS and IPS Equally Important

“Creating an Education Policy Statement” provides steps to help plan sponsors define, document and benchmark employee education initiatives. It includes five elements of a well-crafted EPS for retirement plans: clear plan purpose; measurements and benchmarking; well-defined roles and responsibilities; plan objectives and education goals.

The education policy statement is a natural extension of the investment policy statement (IPS), though it is not required by the Employee Retirement Income Security Act (ERISA), the white paper states. It is, however, a key component of administering a plan and measuring ongoing performance. The EPS provides structure for the plan’s employee education efforts, sets parameters, and establishes measurement benchmarks to gauge progress and the success of education programs.

“American workers are grappling with a high degree of uncertainty when it comes to planning for their retirement,” said Stig Nybo, president of pension sales and distribution for Transamerica. “This white paper outlines how plan sponsors and financial advisers can establish a plan to help educate employees to improve their retirement readiness.”

For more information, call 888-401-5826 or visit www.TA-Retirement.com.