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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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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Why Plan Sponsors Should Regularly Benchmark Retirement Plan

Why Plan Sponsors Should Regularly Benchmark Retirement Plan

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The retirement planning space is competitive. 401(k) and 403(b) plan providers are under more pressure than ever to make sure that their services are competitive, both in terms of cost and performance. Still, the rising number of plan participant lawsuits filed against sponsors in recent years demonstrates that there remains significant leeway for less than competitive practices if sponsors aren’t vigilant. A vital component of this awareness is regular benchmarking of plan performance and fees against industry averages. This kind of cross-referencing is the responsibility of plan sponsors and can come with significant risks and opportunities. Below is a look at the factors that make sound benchmarking practices so crucial.

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Should Retirement Plan Providers Implement Automatic Enrollment?

Should Retirement Plan Sponsors Implement Automatic Enrollment?

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Use of automatic enrollment in defined contribution plans has grown considerably in recent years as plan sponsors seek to boost employees’ participation and retirement savings. Concerned about the fact that only 32 percent of workers nationally who have access to a 401(k) or 403(b) plan participate, employers are moving to automatic enrollment out of a sense of responsibility.

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