What employees need to save

A new study suggests that the best way for employers to help employees save more for their retirements is to show them how much they'll need.

In a recent Employee Benefit Research Institute study, more than 1,300 workers and retirees answered far-ranging questions about their attitude towards retirement finances.

The study revealed that calculating the amount of money they will need in retirement may help focus employees on the need to start retirement planning.

Almost half of all workers who calculated a numerical goal for their retirement needs reported that it made them change how they approached retirement savings.

Most often, the change was to start saving or investing more.

The survey also revealed that workers preferred a detailed calculation tool to a short one because they feel it gives a more customized answer that focuses on their individual situation.

The lesson for an employer that wants to encourage employee participation in its 401(k) plan is clear: A detailed retirement savings calculation tool should be included in the educational material about the plan.

In addition, calculation of retirement savings goals should be a significant part of any group education or one-on-one counseling of employees.

Rick Pierchalski
BPU Investment Management
rpierchalski@bpuinvestments.com

Complying with export laws

Companies looking to export their goods abroad must be mindful to comply with a number of U.S. laws and regulations.

The most important laws related to exporting are:

1. The Foreign Corrupt Practices Act of 1977, as amended, which forbids U.S. companies from bribing foreign public officials to secure an improper business advantage.

The act does allow payments to "facilitate" or "expedite" performance of routine government services, such as obtaining permits or utility service.

2. The Export Administration Act of 1979 and subsequent administrative regulations, which prevent U.S. companies from participating in or supporting boycotts against countries considered friendly to the United States.

3. Presidential executive orders issued under the International Emergency Powers Act and administrative regulations, which require companies selling a broad range of equipment, software and technology to obtain licenses permitting them to export their products.

To make certain that they do not run afoul of exporting laws and regulations, companies should train employees and representatives on what these laws prohibit and allow.

Companies also should routinely monitor the activities of their employees and representatives, looking for red flags (such as unusual bonuses or high commissions paid to third parties) that suggest that someone may be acting improperly.

Joshua R. Lorenz
Meyer Unkovic & Scott
jrl@muslaw.com