When employees become disabled, both employer and employee contributions to many retirement plans cease. To address this, CCP and MBSA developed 401(k)Secure®, a patented program that continues participants’ contributions to their retirement plans during periods of disability.
“By including the exemption in the final rules, the
Employers can make this benefit available at little or no cost, paying for 401(k)Secure (premiums represent only a small fraction of annual plan contributions); sharing the cost with employees; or making it available on a 100% voluntary basis, with employees choosing whether to buy coverage.
For three decades there has been a steady migration from employer-sponsored defined benefit (DB) pensions to defined contribution (DC) retirement plans. DB plans largely protected employees against disability; in contrast, DC plans generally have not.
“Most employees are unaware that retirement benefits from defined contribution plans are at risk of diminishment in the event of disability,” says
Along with the loss of employer and employee contributions, employees also lose growth/interest that would have been earned on those contributions. This lost growth of assets can represent a multiple of the lost contributions themselves.
CCP, MBSA, and their jointly owned affiliate,
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