Blogs

Article | 4 min |
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...
Article | 5 min |
Want to Improve Retirement Outcomes? Make Sure Employees Understand Social Security Basics New research reveals Americans have a significant knowledge gap regarding Social Security benefits. According to a recent survey 1, more than half of Americans express confidence that they know exactly how to optimize their Social Security benefits. However, only 6% actually understand all the factors that determine the maximum benefit someone can receive. In addition, the report highlighted additional knowledge gaps: A full 39% don’t know at what age they are eligible to receive their full benefits...
Article | 3 min |
For the past five years, Black Rock’s DC Pulse survey has helped identify trends in retirement and highlight the needs and concerns of savers. As we come out of COVID-19, it’s a timely lens into the mindset of savers and what’s needed going forward. A key focus of the 2021 DC Pulse survey was retirement income. Survey results indicate that workers have a strong desire for a retirement savings vehicle that can produce a predictable income stream throughout their retirement years. In fact, 81% of participants said it would be helpful if their employer-provided secure income-generating options in...
Article | 5 min |
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...
The Challenges The client was frustrated with their plan provider because they were failing nondiscrimination testing on an annual basis. In addition to this issue, the plan had over 120 participants and thus was audited every year. Since the plan provider was running testing and census information without reviewing it for potential savings, these two issues cost the plan and its highly-compensated employees (HCEs) money. Due to the plan’s nondiscrimination testing failures, its HCEs either had to have money returned to them or the plan had to contribute additions to its non-highly compensated...