Attributes of a Successful Retirement Plan Program

Attributes of a Successful Retirement Plan Program

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Retirement plans can be a great benefit for drawing and retaining employees. However, is your retirement plan deemed attractive to current and potential employees? How does it compare to other employers you consider peers? An attractive DC plan does not happen by chance – it requires thoughtful plan design. If you craft a plan prudently and with their retirement in sight, it will be beneficial to both your company and your participants. We have helped many plan sponsors with their plan design and observed the main attributes that make a successful retirement plan program.

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Improving Employee Retirement Readiness

Improving Employee Retirement Readiness

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Recently, the focus of plan sponsors has shifted from reducing plan costs to ensuring plan participants’ retirement readiness and helping them set accurate retirement goals. As a result, the majority of sponsors are working to improve investment menus and change their plan design. Those, however, are only some parts of the overall picture for improving employee retirement readiness.

What retirees are the least prepared for and need the most help with are understanding how long their money will last in retirement, knowing how much they will need when they retire and preparing for the risks inherent to retirement. Here are four key aspects plan sponsors should consider to help plan participants aptly prepare for retirement.

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Best Practices for Managing Participant Data

Best Practices for Managing Participant Data

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Plan sponsors could save a lot of time, expense and stress by implementing a thorough system for managing participant data. Having the appropriate procedures in place can limit potential liability in an audit. Most companies don’t realize the pertinence of maintaining adequate, compliant records until there is a need.

Practicing good recordkeeping is nothing new, as ERISA has declared it a fiduciary responsibility from the beginning. Now, both the Department of Labor (DOL) and the Internal Revenue Service (IRS) are focusing on the requirement of locating missing participants. That makes it even more critical to not wait until an audit to start properly managing your data. Below are a few practical steps to locate missing participants (and beneficiaries). In addition, automatic rollovers can help plan sponsors ensure accurate participant records.

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2018 Year-End Checklist for Plan Sponsors

2018 Year-End Checklist for Plan Sponsors

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As the end of the year approaches, plan sponsors must ensure that they are preparing for proper adherence to regulatory and legislative requirements. ERISA compliance can be a tedious, complicated, and time-consuming process. The following plan sponsor checklist will help cover some of the most important aspects that all sponsors should keep in mind to make the year-end process less challenging.

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Why Auto-Enrollment Matters for Plan Sponsors

Why Auto-Enrollment Matters for Plan Sponsors

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In 2006, Congress passed the Pension Protection Act, which authorized employers to enroll workers in retirement plans automatically. According to the IRS, automatic enrollment is the ability of employers to contribute a certain percentage or amount from an eligible employee’s paycheck into an employee’s retirement account. Employees retain the right to opt out of the program or change the deducted amount. Auto enrollment for defined contribution plans can increase saving rates. It also serves to overcome an employee’s inertia, as many workers find enrolling to be time-consuming and overwhelming. The employer sets the initial level of deduction, helping employees to save more.

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