PLANSPONSOR - February - March 2022 - 27

PARTICIPANTS SPECIAL ISSUE | PHASED RETIREMENT
management decides whether and how
to accommodate the arrangement. Both
approaches have pros and cons.
Formal programs, compared with
informal programs, are more predictable
for employees, which could translate into
higher engagement and-benefiting the
employer-employee retention, Hoeck
explains. Formal programs also are more
uniform; this can make it easier to equip
managers to talk to their near-retirees
and communicate options in advance.
" These programs have the potential
for more predictable retirement patterns,
especially if employees opting for phased
retirement also communicate their anticipated
future retirement date, " Hoeck says.
" Finally, these programs help advance a
culture that honors and supports longerservice,
older workers. "
Eric Phillips, director of financial
partnerships with 401(k) provider Human
Interest in San Francisco, maintains that
the downside of a formal program is that
it can feel rigid. " Especially in a larger
organization, trying to define the parameters
of a program can be difficult when
you're trying to account for different roles
and responsibilities, " Phillips says. " Is the
retiree a manager, and will he retain those
responsibilities? Will there be a gradual
ramp down? Over what time period? Is he
able to do a part-time version of his role, or
will it require some shift in responsibilities?
There's a lot to think through. "
Papaz says he believes an informal
program allows the employer to maintain
greater flexibility and customization with
implementation. With these programs, the
employer can offer a phased retirement to
just the people whose departure presents a
risk to the organization, he notes.
Pattie Graves, human resource knowledge
adviser with SHRM, in Bel Alton,
Maryland, points out that while informal
programs can be more flexible and better
targeted, they potentially have drawbacks.
They may lead to discrimination or disparate
impact when selecting only certain
employees for the program. Additionally,
employees who are ineligible to participate
might view the programs as showing favoritism
or being unfair, Graves says.
Employers have been more likely to
offer informal arrangements. The SHRM
Employee Benefits 2019 survey found
that only 6% of employers had formal
programs and that number had not
increased for several years. In contrast,
15% had informal programs in 2019, up
from 10% in 2015.
A 2018 WTW study also found much
greater use of informal, case-by-case
PLANSPONSOR.COM February - March 2022 27
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PLANSPONSOR - February - March 2022

Table of Contents for the Digital Edition of PLANSPONSOR - February - March 2022

INSIGHTS
INDUSTRY ANALYSIS
RULES & REGULATIONS
UPFRONT
Let’s Talk
Let It Grow
When Workers Retire in Stages
Virtual Lessons Learned
Managed Accounts, Today
How ‘Well’ Is ‘Well’ Enough?
Differentiation by Income
FIDUCIARY FORUM
INSIDE ANGLE
PLAN PROFILE
PLANSPONSOR - February - March 2022 - Cover1
PLANSPONSOR - February - March 2022 - Cover2
PLANSPONSOR - February - March 2022 - 1
PLANSPONSOR - February - March 2022 - INSIGHTS
PLANSPONSOR - February - March 2022 - 3
PLANSPONSOR - February - March 2022 - INDUSTRY ANALYSIS
PLANSPONSOR - February - March 2022 - 5
PLANSPONSOR - February - March 2022 - RULES & REGULATIONS
PLANSPONSOR - February - March 2022 - 7
PLANSPONSOR - February - March 2022 - 8
PLANSPONSOR - February - March 2022 - 9
PLANSPONSOR - February - March 2022 - UPFRONT
PLANSPONSOR - February - March 2022 - 11
PLANSPONSOR - February - March 2022 - 12
PLANSPONSOR - February - March 2022 - 13
PLANSPONSOR - February - March 2022 - 14
PLANSPONSOR - February - March 2022 - 15
PLANSPONSOR - February - March 2022 - 16
PLANSPONSOR - February - March 2022 - 17
PLANSPONSOR - February - March 2022 - Let’s Talk
PLANSPONSOR - February - March 2022 - 19
PLANSPONSOR - February - March 2022 - 20
PLANSPONSOR - February - March 2022 - 21
PLANSPONSOR - February - March 2022 - Let It Grow
PLANSPONSOR - February - March 2022 - 23
PLANSPONSOR - February - March 2022 - 24
PLANSPONSOR - February - March 2022 - 25
PLANSPONSOR - February - March 2022 - When Workers Retire in Stages
PLANSPONSOR - February - March 2022 - 27
PLANSPONSOR - February - March 2022 - 28
PLANSPONSOR - February - March 2022 - 29
PLANSPONSOR - February - March 2022 - Virtual Lessons Learned
PLANSPONSOR - February - March 2022 - 31
PLANSPONSOR - February - March 2022 - Managed Accounts, Today
PLANSPONSOR - February - March 2022 - 33
PLANSPONSOR - February - March 2022 - How ‘Well’ Is ‘Well’ Enough?
PLANSPONSOR - February - March 2022 - 35
PLANSPONSOR - February - March 2022 - Differentiation by Income
PLANSPONSOR - February - March 2022 - 37
PLANSPONSOR - February - March 2022 - FIDUCIARY FORUM
PLANSPONSOR - February - March 2022 - INSIDE ANGLE
PLANSPONSOR - February - March 2022 - PLAN PROFILE
PLANSPONSOR - February - March 2022 - Cover3
PLANSPONSOR - February - March 2022 - Cover4
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