Retirement Plans

Government Contractors Savings Plans

The Government Contractors Savings Plan can be set up as a pension plan or as a 401(k). Both the pension plan and the 401(k) plan are designed to only accept employers’ contributions for hourly employees on covered projects. However, the 401(k) plan can allow for salaried, management and highly compensated employees to participate as well. By contributing the prevailing wage fringe benefit payments into this plan for the non-highly compensated employees (hourly), the owners and other highly compensated employees are able to contribute at higher levels.

A win-win situation for employer and employees:

Advantages for the employer

  • Low cost
  • Simple administration
  • Reduced payroll costs
  • Increased profits
  • More competitive on bids

Advantages for the employee

  • Wide range of investment options
  • 24-hour account access by phone or Internet
  • All contributions are 100% vested immediately
  • Receive benefit plan reports outlining investment performance and account activity
  • Accounts are valued on a daily basis