Elevate Retirement Readiness With Step-Up Savings

Here’s an option for clients committed to helping their employees save more for retirement: The Standard’s Step-Up Savings service. The service gives participants the option to choose an annual incremental increase to their deferral percentage. It’s an effective way to combat the set-it-and-forget-it cycle that participants can fall into.

Have questions about Step-Up Savings? Read through our FAQ before you meet with clients.

Q: Is there an additional cost to add Step-Up Savings?
A: No.

Q: Is a plan amendment required to add Step-Up Savings?
A: No plan amendment is required.

Q: Can plan sponsors elect to automatically turn on the Step-Up Savings service for all participants?
A: No. Employers may elect to offer this service to participants through the plan, but participants individually decide to opt in to the service.

Q: How do participants opt in and opt out of this service?
A: Participants may opt in or opt out of this service online or via paper form. Newly eligible participants can elect Step-Up Savings at enrollment.

Q: Are Roth contributions eligible for Step-Up Savings?
A: If a plan allows Roth contributions, the participant will be prompted to decide if they want to step up their pre-tax, Roth or both contribution rates. The minimum, step-up rate and step-up maximum will be managed independently.

Q: Once a participant elects the Step-Up Savings service, can they actively change their contribution rate and remain in Step-Up Savings?
A: Yes, participants can actively make a contribution rate change and continue using Step-Up Savings, as long as the new contribution rate is lower than the maximum rate established under the Step-Up Savings service.

Q: Are other plan services required to add Step-Up Savings to the plan?
A: Yes, the plan must offer online enrollment.

Step-Up Savings is just one service that The Standard offers to help participants save for retirement. Contact your local consultant to discuss more options.