When Jeff Gillis, president of WellTree Inc. – a 23-year TCIA member company based in Brunswick, Maine – first considered offering his employees a 401(k) program, he was daunted by the potential administrative burden and cost. With a small team of seven field workers, an office manager and a bookkeeper, the idea of managing a retirement plan seemed overwhelming. “I thought it would be too much of an administrative burden,” Gillis explains

Tree Pros Inc., an accredited, 17-year TCIA member company based in Chino, California, is one of several TCIA member companies taking
advantage of TCIA’s Multiple Employer Aggregate 401(k) Program. Photo courtesy of Tree Pros Inc.

Two years ago, Gillis discovered the TCIA Multiple Employer Aggregate 401(k) Program. The program is designed to help TCIA member companies leverage the administrative weight and economies of scale to offer retirement planning at a group price.

“A group 401(k) plan helps small companies access better investment options with lower fees, removing barriers for small tree care businesses,” says Bob Rouse, senior vice president of business support at TCIA. “We want to help small businesses offer this benefit to their employees, no matter the company’s size.” TCIA is not only endorsing this program, but, as Rouse explains, “We also offer it to our own employees.”

Once WellTree joined the program, Gillis found it extended his staff’s administrative capabilities rather than overburdening them. “Some of the work is handled in-house, but the program is mostly outsourced,” he says. “We get to rely on the experts at Alpha Pension Group for their expertise regarding everything from tax changes to federal reporting requirements for the Internal Revenue Service and Department of Labor.”

Key benefits

The TCIA Multiple Employer Aggregate Program offers several key benefits to small tree care businesses. These include:

• Access to more funds: Companies can offer a wider range of investment options.
• Reduced fees: Group pricing lowers the overall costs.
• Less administrative burden: Much of the administrative work is managed externally.
• Expert guidance: Professionals handle complex tasks, reducing liability for the business owner.
• Recruitment and retention tool: A 401(k) program can attract and retain employees.

The program is designed to lessen the pressure and fiduciary risk for small-business owners, allowing them to focus on what they do best. As more TCIA member companies join the program, the overall fees will decrease over time and companies will qualify for more premium stock plans, providing a greater benefit to employees.

As part of the program, employees will have access to retirement experts through custom education programs, ongoing financial seminars and dedicated one-on-one meetings, all at no additional cost. The goal is to improve financial wellness and literacy for all in order to help prepare for a successful retirement, according to Rouse.

For Jeff Gillis and WellTree Inc., the program has proven to be a valuable resource. “Having someone there to answer questions really dialed down our stress level for offering this program. It also enhances the quality of life for our employees, which is always worth considering,” Gillis shares. “The benefits definitely outweigh the costs.”

Climbers with Seattle Tree Care Company, an accredited, nine-year TCIA member company based in Seattle, Washington, and a participant in TCIA’s 401(k) program. Photo courtesy of Seattle Tree Care.

Conclusion

The TCIA Multiple Employer Aggregate Program is designed to make it easier for smaller tree care company owners and managers to provide valuable retirement benefits to their employees, while they maintain focus on their core operations. The program reduces administrative burdens and costs, providing access to expert management and financial literacy resources.

“It’s a win-win,” says Rouse. “The more companies that join, the more each company saves and, ultimately, the more tree care workers benefit through improved retirement options and financial security. It’s all about strength in numbers.”

For more information about the TCIA Multiple Employer Aggregate Program, visit tcia.org and search for “401(k)” or call 1-800-733-2622.

Tracey Miller is TCIA’s marketing content manager based at TCIA’s headquarters in Manchester, New Hampshire.