A news release pointed out that the savings come from a one-year lowering of the Social Security payroll tax from 6.2% to 4.2% that goes away in 2012. “The sooner employees start saving that two percent, the greater an effect it will have on their retirement account balances,” said Rick Ayers, vice president, Securian Financial Group, in the announcement.
Securian’s efforts to convince participants to use their Social Security tax savings for their retirement goals include statement inserts and a Web site feature showing how the 2% could grow over the years. There’s also a place on the Web site where employees can easily opt into the additional 2% savings.
More information is at http://web2.securianretirementcenter.com/sub/Home_Main.htm.
A PLANSPONSOR NewsDash survey found 20.3% of sponsors indicated they already are encouraging participants to put the tax cut into retirement savings, while another 7.8% said they had not done so yet, but were either in the process of doing so or planned to (see Survey Says:Have You Made a FICA-Inspired Participation Push?).