Blogs

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...

There is a lot of conversation lately reminding employees and participants of the fundamental reasons to contribute to their own retirement through their 401(k) plan, as well as why they should stay invested even during tough economic times. Times are tough for employers, too. With that in mind, here is our reminder for you about the importance of providing a 401(k) plan. Although the ride has been bumpy, these basics have not changed. Competition for talent. Employees expect to have a 401(k) plan. When the economy is in overdrive, that’s especially true; but even when it isn’t, the 401(k)...

Still, one study conducted early in 2020, the 30th Annual Retirement Confidence Survey conducted by the Employee Benefits Research Institute (EBRI) and discussed in their Issue Brief dated June 8, 2020, provides some interesting information. Companies striving to help women achieve a secure retirement may be particularly interested. Women face different challenges in saving While overall retirement confidence was high, women expressed less confidence in their future retirement security than their male counterparts. The problems women face in preparing for retirement tend to be different than...

Life involves risk. One of them is retirement, and whether the money we save to fund it will last. Do your employees understand their risk, and actions they can take now to manage it? A recent survey found that retirement security may be threatened by these four risk factors: longevity, behavior, market conditions and inflation. The survey found a disconnect between each of these risks and participants’ actions. While that’s a concern, it’s also an opportunity to structure communications to clarify the connection. Risk #1: Longevity 2020, life expectancy for the average American is roughly 79...

Before the pandemic struck, sponsors of U.S. defined contribution plans were realizing the benefits of calling outside assistance for guidance. Even more seem to be doing so today. Relying on consultants and financial professionals for the very specialized help they provide can help sponsors weigh options. What’s more, it may provide a level of protection for those with authority over the plan, and may improve the plan’s performance. The 2020 Inside the Minds of Plan Sponsors survey found that 58% of plan sponsors rely on a consultant or financial professional — up 16% from the prior survey...