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What are retirement services?

Retirement services are the management of retirement planning resources that are provided by employers to employees.

As a benefit, many employers offer retirement planning resources to employees, such as 401(k) accounts. The design, record-keeping, and management of these resources is considered retirements services.

Retirement services may comprise:

  • 401(k): A qualified plan established by employers. The plan allows eligible employees to make salary deferral contributions on a post-tax and/or pretax basis. Employers may make matching or non-elective contributions to the plan on behalf of eligible employees and may also add a profit-sharing feature to the plan.
  • Savings Incentive Match Plan for Employees (SIMPLE) IRA: A retirement plan established by employers, including self-employed individuals. This plan allows eligible employees to contribute part of their pretax compensation to the plan. Employers are required to make either matching contributions, which are based on contributions made by employees, or nonelective contributions, which are paid to each eligible employee regardless of whether the employee made contributions to the plan.
  • Non-Qualified Deferred Compensation (NQDC): Compensation that has been earned by an employee, but not yet received from the employer. Because the ownership of the compensation has not been transferred to the employee, it is not yet part of the employee's earned income and is not counted as taxable income.

Retirement services can be outsourced to a vendor, which in turn provides the company with administrative support, reporting on metrics like plan participation, tools for employee communication and education, and compliance reminders and updates.

Want to learn more about retirement services?

See how ADP helps companies design and manage retirement plans. Visit ADP Retirement Services >