Anyone familiar with the time value of money knows that even small amounts, when compounded over long periods, can generate thousands, or even millions, of dollars. What you may not know is that most young people in today’s workforce will probably fund their retirement years from 401(k) plans. These simple truths are why many financial planners recommend tax-advantaged accounts and investments, and a major reason why your company should join the National Association of Wastewater Transporters Inc. association 401(k) plan.
While the name sounds more like a low-cal, vitamin-packed breakfast cereal, a 401(k) is a special retirement account funded through pretax payroll deductions. The funds can be invested in stocks, bonds, mutual funds, or other assets, and the dividends, interest, and capital gains are not taxed until they are disbursed. Meanwhile, they compound tax-deferred inside the account. To young employees looking at four or five decades in the workforce, this can mean the difference between living at the Park Plaza or Motel 6.
These retirement plans are funded by the employer and employee, or exclusively by the employee. They have more options and flexibility to maximize annual retirement contributions, a tax-free loan option, and catch-up contribution provisions. While no one doubts that 401(k)s are the best way of deferring dollars for tax advantages, they also carry greater accounting demands and compliance with Internal Revenue Service rules. Managing a 401(k) can cost $1,500 to $2,000 a year. Such fees are prohibitive for small companies putting away $3,000 or $4,000 annually.
To make it easier for our members to develop and afford 401(k)s, we partnered with Employee Benefits of St. Cloud Inc. (EBSC) to create an approved NAWT 401(k) master program. It enables members to participate, yet customize their plans as needed. The reporting cost for small companies is about $500 a year.
This retirement plan is the biggest benefit we offer our membership, and it should be your company’s, too. Taking care of your employees is a good thing. In fact, a study by Watson Wyatt Worldwide says that competitive base pay, medical insurance, and a 401(k) plan are the must-have benefits necessary to attract and retain employees. Furthermore, keeping the same workers increases profits by 7.3 percent.
The question is no longer, can you afford a 401(k) plan, but can you afford not to have one? When my company started IRA accounts, the guys were all in their 20s. The program cost hardly anything, yet the projection for every one of them was $1 million by the time they reached 65. Put the ball in motion. Call NAWT at 800/236-6298, visit www.nawt.org/401k, or call EBSC at 320/251-0034.
VAC TRUCK TRAINING IN VEGAS
The National Onsite Wastewater Recycling Association Inc. will offer the NAWT vacuum truck training course at its Installer Academy on Dec. 8-10 at the Riviera Hotel, Las Vegas, Nev. Details will follow.
FOUR ORGANIZATIONS JOIN EPA MOU
U. S. Environmental Protection Agency Memorandum of Understanding (EPA MOU) added four more organizations to the eight-member partnership. The State Onsite Regulators Alliance (SORA) and the Association of State and Interstate Water Pollution Control Administrators (ASIWPCA) are regulators. MOU hasn’t had regulators in the group before, so they are a welcome addition. The industry can’t afford to be controlled by powerful health department bureaucrats who can’t recognize that some installed systems are inappropriate for the soils and conditions. And the environment can’t afford the consequences of officials who still operate as if it were 1962.
Stick with me through this transition. The third new organization is the Groundwater Protection Council (GWPC), representing well drillers and geologists. It provides an interface between Safe Drinking Water Act and Clean Water Act issues. The EPA is funding a project to help water authorities write source water protection plans that focus specifically on onsite systems. Undoubtedly, one component will be the need to develop onsite management programs to guarantee that wastewater isn’t polluting our drinking water.
The addition of these three members will help MOU support the development of consistent regulations and approve new technology. SORA also will assist by standardizing state regulatory practices and keeping state programs updated on onsite issues.
The fourth member, the Water Environment Research Foundation (WERF), conducts research to advance knowledge of decentralized systems. The organization also has EPA dollars that historically went to Big Pipe projects. Now, the grants go to such programs as the National Environmental Health Association (NEHA) Installer credential and the Consortium of Institutes for Decentralized Wastewater Treatment (CIDWT) installer training program.
PROGRESS REPORT
NAWT’s participation in MOU has elevated the perception of the hauler from being hayseeds to knowledgeable, well-spoken individuals. Five years ago, EPA was ready to throw away our industry in lieu of utilities managing onsite systems. And while we all understand that a percentage of bad apples still exist, EPA now thinks we have enough good apples to manage and maintain onsite systems.
NAWT continues to work at raising the EPA’s confidence level about service technicians. For example, we held 26 workshops for inspectors, operation and maintenance providers, and vacuum truck operators with 1,100 participants in 2007. About 200 individuals also took installer training in preparation for the NEHA Installer credential. Next year, we will transition from training the NAWT installer course to the CIDWT installer course.
