Blogs

The Department of Labor (DOL) released guidance in January 2021 that will help plan sponsors keep track of participants. Finding former employees who still have plan balances but no longer work for the company can be challenging. And losing track of them may be a fiduciary issue because of the “exclusive benefit” rule set down in ERISA. It requires that plans diligently seek to distribute assets, even to missing or unresponsive participants. Best Practices for Pension Plans is one of a set of three related publications released by the DOL on January 12, 2021. It provides information to help...

A recent survey confirms that there is no single path to retirement. Franklin Templeton’s June 2021 “Voice of the American Worker” survey confirms that retirement today feels “less cookie cutter than it used to be,” according to 82% of those polled. The survey found that individuals can benefit from personalized guidance to achieve their financial goals — an area where a financial advisor can help. The survey also showed that many participants are looking to their employers for more tools and resources. But most of all, the survey found that the way participants think about retirement is...

A recent survey of retirement plan participants shines a light on their positive perspectives — which can help inform plan changes you may be considering. Released in October of 2021, American Century’s 9th Annual Survey of Retirement Plan Participants found that more workers are optimistic about their futures in 2021 than they were in 2020. Not surprisingly, following more than a year of dealing with the pandemic, participants are now more positive about saving, risk and expectations. Because it’s the start of a new year, now may be an opportune time to discuss the findings with your plan...

The list of employee financial concerns includes stressful personal situations that distract employees’ attention from the work at hand. Thirty-nine percent of employers say that’s the item of most concern to employees, followed by increasing health care costs at 34% and the expenses and pressures of caring for family members (24%). Lackluster retirement savings come in sixth on the list, with 18% of employers choosing it as either the number one or number two issue for their employees. Reasons employers offer financial wellness programs To address these employee concerns, many employers — 70%...

With its broad impact across qualified retirement plans, it is important for plan sponsors to become familiar with the Act’s changes, and to take appropriate action. The Act’s administrative changes will likely require plan amendments, and participant notification practices will also need to change. With that in mind, we gleaned a few key components of the SECURE Act for your review. This is not an exhaustive list, and we encourage you to seek the opinions of your plan’s counsel. Required Minimum Distributions If retired participants are allowed to maintain their accounts in the plan, the date...