Building the Future
Beneco has a plan to help you build your construction business and a secure financial future for you and your team
For more than three decades, Beneco—the nationwide expert in unique employee benefits for the construction industry—has allied with contractors to empower them to build their businesses, while simultaneously building a more secure and prosperous future for their valued workers who depend on them.
The dedicated team at Beneco brings more than just cursory help with retirement planning and health care coverage. From custom bundled solutions to compliance expertise and intimate knowledge of prevailing wage requirements and strategies, the company’s deep dive into the financial health and future of both the companies and employees of those companies is a game changer in an industry that is so often underserved. Beneco’s mission is to design solutions that reduce administrative burdens so that contractors can do what they do best—build.
Ready for Retirement?
It’s no secret that a crisis exists in the U.S. construction industry when it comes to financial security in retirement. Kristy Bryson, Beneco’s CEO, shares, “People do not have enough saved for retirement. In the overall population, the average saved is $100,000. In our industry, it’s less than $5,000 saved for retirement. It truly is a crisis, and Beneco offers a solution. By using Beneco’s prevailing wage retirement plan, we have employees of our plan sponsors who are retiring as millionaires, some of them with close to two million dollars so far, and that’s only going to grow.”
Compliance and Prevailing Wage Solutions
Compliance expertise is an important aspect to the overall solution Beneco provides to contractors, including custom plan design, maximizing prevailing wage dollars and employee participation in the plan, attention to highly compensated employees and focus on rewarding dedicated employees.
Dwight Sawin, Beneco’s CFO, emphasizes how critical the prevailing wage aspect is to both business owners and their employees, stating, “If you’re a contractor that does work in the prevailing wage space and you’re not using a plan like Beneco’s, then you’re probably losing to your competitor down the street. Any contractor will tell you how tight operating margins are in this industry. The Beneco plan has helped contractors triple their operating margins by using prevailing wage dollars to fund a robust benefits package for their employees. Our plan design has allowed our clients to bid more competitively on projects, purchase new equipment, hire new employees and ultimately grow their businesses. Our clients view us the same way we view them, as a partner they can trust.”
Many contractors pay out the mandatory fringe benefit as wages because it’s the easiest way to comply with the law. While that may be true, it’s also much more costly to the contractor. And the reason is pretty simple: all wages paid to employees are subject to payroll taxes, such as social security taxes, federal and state unemployment taxes, workers’ compensation insurance, and general liability insurance. The rate always varies, but it is estimated that the additional cost to the contractor for these payroll taxes is roughly 25 cents for every dollar paid in wages.
On the other hand, if a contractor uses those fringe dollars to fund a “bona fide” benefits plan for his or her employees, that money would be totally exempt from any and all payroll taxes, thus saving the contractor tens of thousands, maybe even hundreds of thousands of dollars a year.
Kristy concurs that the prevailing wage space for Beneco’s clients is becoming more and more competitive. “If an employer is still paying the fringe out in cash they are not likely to be able to survive long term. We design plans around the prevailing wage so we’re able to maximize the planned participation and maximize engagement in the plan and contributions,” she says.
The Benefits of Bundling
Beneco takes the guesswork and burden away from contractors by providing the highest level of individualized service with advantages like a participant resource center dedicated to answering employee questions—complete with bilingual support—and education through in-person meetings and annual reviews. And with the bundled solutions that Beneco offers, contractors will save time and money, while minimizing aggravations.
Just consider how many providers a company would be using if it wasn’t bundling. Kristy explains, “If you were to unbundle what we do, even if we were only talking about the retirement side, our plan sponsors would have to be managing at least seven different relationships. But, because we have taken that responsibility on, they have one person to call—that’s Beneco. Plus, we manage the trustee and all of the other relationships they would need to stay compliant with prevailing wage based on Department of Labor, ERISA and Davis-Bacon requirements.”
A Helping Hand
The Beneco team really considers themselves to be business partners with their plan sponsors. “We have a very consultative approach to those relationships as opposed to just providing reactive client service,” Kristy says. “If you think about it, if you are a business owner and you could partner with someone to save you 30 percent off your operating costs, then that is somebody who helps you build your business. We hope that contractors will call upon us and let us help find solutions to securing their financial future and the future of their employees.”