A retirement savings account is one of the most sought-after benefits an employer can offer. However, plan sponsors can sometimes struggle to effectively communicate a plan’s benefits to employees in ways that boost engagement and enrollment. Don’t let your plan wither on the vine; follow these seven key steps plan sponsors can take to increase employee participation in your retirement plan.
Although U.S. stock indexes are hovering at or near all-time highs, many American workers still aren’t financially secure enough to retire. In response, the Setting Every Community Up for Retirement Enhancement (SECURE) Act focuses on promoting lifetime income options like annuities within a 401(k) and incentivizing businesses to expand their retirement offerings like auto enrollment. The Act also liberalizes the existence of Multiple Employer Plans (MEPs) for plan sponsors to pool their investments and plan administration usually at a cost savings.
This Act officially became law in December 2019, marking one of the most comprehensive retirement reform packages employers have seen in years. What should plan sponsors and participants know about these changes?
A successful retirement plan program encourages and enables its participants to build sufficient retirement savings, choose the appropriate investments, manage investment risk, and generate a lifetime of income. Although there exist nearly as many retirement plan structures as individuals who participate in them, not all plans are created equal—and plan design can significantly influence savings and retirement decisions. However, due to the number of options available, plan design can be a complex undertaking. Learn more about the plan design features that will boost your plan participants’ readiness for retirement.
Managing a thoughtful retirement plan while trying to keep up with the ever-changing legal and regulatory environment can be challenging. Often, concerns over managing a retirement plan can vary, and plan sponsors are unsure of what needs to be addressed. Below, we review five ongoing plan sponsor concerns that sponsors should keep in mind to guarantee they have an effective retirement plan in place not only to ensure the retirement readiness of their employees, but to avoid liability should an audit occur.
With around 10,000 Baby Boomers turning 65 every day, retirement reform has taken a front seat in the U.S. legislature. In late May 2019, the U.S. House passed (by a near-unanimous vote) the Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019, which seeks to overhaul retirement planning the same way the Tax Cuts and Jobs Act of 2017 overhauled U.S. tax laws.
The SECURE Act’s changes can impact plan sponsors of all types and sizes. Learn more about what’s in this Act and how plan sponsors can (and should) prepare for its seemingly likely passage.