Maximizing Benefits and Savings: A Prevailing Wage Success Story

In the competitive landscape of construction contracting, every advantage counts. That’s why implementing the right retirement plan strategy is so important. We’re not just talking about compliance or ticking boxes; we’re talking about leveraging a deep understanding of prevailing wage laws to not only meet legal requirements but to use them as a strategic advantage in attracting and retaining top talent, optimizing project costs, and ultimately propelling the business forward. Check out the recent story below from one of our clients and see the real-life benefits of implementing a prevailing wage retirement strategy.

Benefits galore!

When approached recently by a contractor for more information on prevailing wage, EGPS was able to help – big time. When the contractor partnered with us to revamp their retirement strategy, they unlocked a cascade of benefits that propelled both their business and their employees towards financial security.

By redirecting fringe dollars into a specialized prevailing wage retirement plan, the contractor achieved remarkable savings, slashing upwards of 30% on payroll tax and worker’s compensation expenses on those redirected funds. This strategic move not only bolstered their bottom line but also empowered their workforce to secure their financial futures.

One of the most significant impacts of this transformation was the accelerated savings for the contractor’s owner, who had been lagging behind in retirement planning. Working with a TPA not specialized in prevailing wage had cost them years of potential savings and benefits. However, our tailored plan design, coupled with a cash balance opportunity, provided a solution that allowed the owner to catch up while minimizing out-of-pocket costs.

MORE benefits? Can’t stop, won’t stop

But the benefits didn’t stop there. Thanks to the expertise of our actuaries in plan design specialization, we were able to include only the office staff and non-prevailing wage employees in the cash balance plan. This strategic allocation of resources provided additional opportunities for field employees, utilizing fringe dollars redirected into the plan. This unique feature, rooted in prevailing wage regulations, ensured that all employees, regardless of their role, could aggressively save for retirement.

In the end, the contractor not only saved substantially on expenses but also fostered a culture of financial wellness and security among their workforce. Our partnership exemplifies the power of strategic retirement planning tailored to the unique needs of prevailing wage contractors, driving both business success and employee prosperity.  

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