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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Cybersecurity: Are Your Plan Participants Protected

Cybersecurity: Are Your Plan Participants Protected

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Advancements in technology have now made it possible to instantly and conveniently access online accounts to retrieve personal information, such as retirement plan savings data. As smartphones and other devices make it easier to obtain electronic documents, plan participants expect to have instant access to their retirement plan records. Yet, security is paramount in this new era, and retirement plan cybersecurity is especially vital. Any electronic recordkeeping today raises cybersecurity concerns and presents new risks for plan sponsors and their participants. It is no longer an issue of if a problem may arise, but likely when it will arise. Learn the risks as well as pertinent precautionary measures on how to protect your plan participants.

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Understanding Fiduciary Roles: 3(21) vs 3(38)

Understanding Fiduciary Roles: 3(21) vs 3(38)

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Due to ERISA’s increased standard of care, the now defunct DOL rule and other potential regulatory replacements, plan sponsors are faced with the heightened importance to understand the fiduciary roles and responsibilities for their retirement plan. Below, we have outlined the ways of becoming a fiduciary, the differences between ERISA 3(21) and 3(38), and which is best depending on your plan and plan committee(s).

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Common Plan Sponsor Misconceptions

Common Plan Sponsor Misconceptions

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Plan sponsors have to manage many moving parts in their retirement plans. Arranging plan options, managing compliance, increasing participation, educating participants and most importantly, adhering to fiduciary obligations can feel like an overwhelming responsibility. Due to the large amount of work in starting and maintaining their retirement plan, sponsors often overlook certain aspects that may expose them to potential liability.  Additionally, some plan sponsors are unaware of the ongoing fiduciary duties which can result in misconceptions about the plan and its participants. These misconceptions can be costly, and sponsors may find themselves in trouble with the IRS or the Department of Labor.

Here are five common misconceptions plan sponsors have – and why they are likely wrong.

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How Regulation Best Interest Could Impact Non-ERISA 403(b) Plans

How Regulation Best Interest Could Impact Non-ERISA 403(b) Plans

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In April of this year, the Securities Exchange Commission (SEC) proposed a new set of guidelines to better govern relationships between professional financial advisers and broker-dealers and those of their individual clients. These suggestions, collectively dubbed Regulation Best Interest, could reshape the relationships between individual investors and the professionals who advise them by ensuring that a broader swath of those relationships requires the broker-dealer to act in the best interests of the client.

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