Specialty Fabrics Review October 2019 - 16

BRIEFINGS

SWATCHES

NEW EMPLOYEE BENEFIT

FAQs: The Textile Industry Retirement Plan
Industrial Fabrics Association International (IFAI) has launched the new
Textile Industry Retirement Plan, a benefit exclusively for IFAI members.
Andrew Aho, IFAI's vice president of new business development, describes
why members should consider the plan and the many advantages it offers.

by Amanda Oelke
EDITORIAL AND
MARKETING INTERN

Members will
save time and
money. When
an IFAI member
adopts this plan,
many of the
administration
chores will be
taken care of.
Andrew Aho
IFAI VICE PRESIDENT
OF NEW BUSINESS
DEVELOPMENT

Q: How does the Textile Industry
Retirement Plan work?

Q: What does a company gain
by offering a retirement plan?

A: The Textile Industry Retirement Plan is a multiple
employer 401(k) plan for IFAI members. Member
companies can participate in the plan by moving their
current retirement plan into the Textile Industry
Retirement Plan. If a member company does not have
a retirement plan for employees, it can create one
under the umbrella of the plan. The Textile Industry
Retirement Plan acts as one large plan and is treated
as such from a government reporting perspective.

A: It helps companies retain good employees.
The employment market continues to be very tight,
and offering a retirement plan benefit is a good
recruitment tool. Ultimately, both the employer
and employee benefit from participation.

Q: What are the primary benefits
of the plan for members?
A: Members will save time and money. When
an IFAI member adopts this plan, many of the
administration chores will be taken care of. For
example, the company would no longer have to
file a Form 5500 with the IRS, as required with a
stand-alone plan. Companies that currently have
an annual plan audit would no longer be required to
do so, resulting in additional time savings, material
cost savings and less hassle.
Member companies without a current 401(k)
plan can offer one to their employees without the
overwhelming administrative burdens associated
with starting up a stand-alone plan.
When most of the administrative duties are the
responsibility of the plan administrators, it greatly
reduces an owner's personal and corporate liability.

Q: What do you consider the greatest
advantages of this Retirement Plan?
A: One is the buying power to achieve cost savings
on investments. Flexibility is another advantage.
This plan will work with Safe Harbor, Roth and
profit-sharing. It includes the flexibility of a standalone plan but eliminates administrative burdens
and expenses of sponsoring a stand-alone plan.
It also has a competitive suite of investment
options and customizable plan design options
involving eligibility, matches and vesting
schedules. You determine eligibility, whether your
plan will have an employer match and what vesting
schedule your plan will have.
16 REVIEW OCTOBER 2019

Q: Why did IFAI decide to implement
this member benefit?
A: IFAI explores a myriad of member benefits.
We are always looking to bring more value to
IFAI members. The Textile Industry Retirement
Plan brings extra value by saving members
money and taking care of administrative burdens.
Just as an employer wants to retain employees,
IFAI wants to retain members. This benefit, and
all the other benefits IFAI offers, bring substantial
value to IFAI membership.

Q: How does someone implement
the Textile Industry Retirement Plan
for their company?
A: IFAI is working with Transamerica for this
program. IFAI members may request an analysis
of their current plan to see if moving to the Textile
Industry Retirement Plan is beneficial. Even if a
member chooses to stay with its stand-alone plan,
this plan review can be a huge benefit.
If any IFAI member does not offer a retirement
plan and is interested in providing this employee
benefit, Transamerica can help create one.

For more information, contact:
Zachary Allyn
Regional Vice President
Transamerica Retirement Solutions
+1 319 721 3885
zachary.allyn@transamerica.com

Specialty Fabrics Review October 2019

Table of Contents for the Digital Edition of Specialty Fabrics Review October 2019