Products June 1, 2007

Principal Develops Plan Tools for Growing Businesses

Principal Financial Group has released a program that gives fledgling businesses some of the same retirement plan tools available to large plans, such as flexible participant services and retirement savings options.
Reported by
According to a company press release, Principal Advantage for Emerging Businesses is only available through third party administrators (TPAs) and uses the Principal Advantage investment platform.
One feature of the program is access to registered investment options sub-advised by investment managers and selected and monitored by Principal’s due diligence program. Plan types include 401(k), Safe Harbor401(k), SIMPLE 401(k), 403(b), Profit Sharing (including Comparability) and Money Purchase.
Some of the other program features include:
  • Smart Start, which allows employers to set a pre-selected salary deferral percentage;
  • The Principal Step-Ahead Retirement Option, which provides an automatic, effortless way to increase contributions;
  • Flexible Enrollment Options, that give participants three ways to enroll: an enrollment form; online; or through their current enrollment kit;
  • Educational tools such as the Enrollment Workbook and Salary Deferral Slide Calculator to facilitate planning; and
  • A quarterly magazine that provides information on saving and investing.
For more information, visit www.principal.com.

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