Learn more about how the SCRS Multiple Employer Plan has helped businesses of different sizes:
Example 1: Employer with 125+ Employees
A collision repair business with 3 locations has 130 employees. Their previous 401(k) had $3 million and received annual contributions of $250,000 per year. Since an annual audit is required when eligible employees exceed 125, the employer was faced with a new annual bill of $10,000.
By moving his 401(k) plan to SCRS, the shop saves 20% in immediate savings and this reduction also includes the cost of the annual audit. The business can retain same design features from current plan, while saving $24,000 annually, and the company now benefits from professional oversight and fiduciary support from the SCRS Investment Committee.
Example 2: Employer with 25 Employees
A collision repair shop has one location and had 20 employees. Company recently established a 401(k) plan to meet their resident State requirements for offering access to a retirement plan. Participation has been modest and the plan has a balance of $100,000. Company pays $5,100 per year between administration, and compliance testing/tax return submission.
The owner of the company learned through his state affiliate that he is eligible to participate in the SCRS Retirement 401k Plan and combine with other employers to drive down administrative costs. Upon joining, administration expenses reduced by over 50% to $2,400 per year and the company now benefits from professional oversight and fiduciary support from the SCRS Investment Committee.