Witnesses appearing before the U.S. Senate Committee on Health, Education, Labor and Pensions (HELP) Thursday told lawmakers that while the retirement income sufficiency issue in the U.S. is a difficult one, there are “fixes” to consider.
Continue reading “HELP Panel Hears Support for Auto Features, Education” »
For the first time in a generation, the Labor Department has taken another crack at the definition of a fiduciary under the Employee Retirement Income Security Act (ERISA).
The proposed rule was unveiled today by the Department of Labor (DoL), which noted that its adoption “would protect beneficiaries of pension plans and individual retirement accounts by more broadly defining the circumstances under which a person is considered to be a ‘fiduciary’ by reason of giving investment advice to an employee benefit plan or a plan’s participants.”
Continue reading “DoL Broadens Fiduciary Net” »
December 16, 2010 (PLANSPONSOR.com) – Not so long ago plan sponsors gauged the success of their defined contribution offerings by a single metric; participation rate.
It’s not that they didn’t pay attention to other criteria, but participation rate is objective, easy to calculate and, certainly for a voluntary savings program, it’s not an inappropriate gauge of the program’s perceived value.
Continue reading “IMHO: The Measure of the Plan” »
Much has been written about what plan sponsors should include in a Request for Proposal (RFP) when they embark upon a search to hire or replace a retirement plan provider. But written proposals submitted in response to an RFP will never capture all of the essential elements that plan sponsors should assess in selecting a provider. It is therefore vital that plan sponsors recognize the potentially significant limitations of relying too heavily upon the RFP as a decision tool. No one in their right mind would buy a house on the internet; yet this is essentially what many plan sponsors are doing when they select a plan provider on the basis of data that has been dumped into a spreadsheet.
When plan sponsors begin an RFP process, it is commonly recommended that they utilize an RFP template and send out multiple RFP’s to several potential providers. This traditional RFP approach is extremely common and remains a fact of life in the retirement plan business. However, there are far more efficient ways to find and select providers. To the extent an industry standard exists, the ‘SPARK’ (Society of Professional Administrators and Recordkeepers) RFP is the most commonly utilized template. The SPARK RFP is thorough, but it is overly cumbersome. It focuses too heavily on the technical aspects, many of which are “commoditized” by noteworthy providers. It also neglects several critically important components of finding the right provider for your organization.
Continue reading “Finding “Best Fit” in a Retirement Plan Provider Through the RFP Process” »
A report released from Barclays Wealth shows that high-net-worth Americans are not as inclined to a traditional retirement as was once the norm.
Continue reading “Traditional Retirement Losing Appeal for Wealthy” »
President Obama on Monday signed into law the Small Business Jobs Act, which included a provision allowing in-plan Roth conversions in 401(k), 403(b), and governmental 457(b) plans.
Continue reading “In-Plan Roth Conversions Present Challenges” »
By Howard J. Stock
September 29, 2010
Most defined-contribution plan participants want automatic escalation to kick in at 45, according to a survey of 300 workers. Sixty-seven percent of respondents wanted automatic escalation of at least 1% when they hit 45. Forty five percent of DC plan participants would be happy if their employer signed them up for automatic escalations of 2% or more per year after they hit 45.
Continue reading “When Should 401(k) Plans Automatically Escalate?” »
Many of the more than 87 million Americans age 18-34, popularly known as “Gen Y” are in financial trouble, according to survey results just released by Western Union.
The latest Western Union Money Mindset Index, a national survey of 3,000 consumers, finds nearly 30% of Gen Yers report having difficulty in managing their spending, more than 20% wait longer to pay their bills, and 35% have borrowed money from friends or family members.
Continue reading “Survey Finds Gen Y in Trouble Financially” »
The Profit Sharing/401k Council of America (PSCA) has unveiled its 2010 401(k) Day campaign with the theme of “401(k) Day… Taking You There.”
A news release said 401(k) Day is an annual comprehensive communication and education strategy campaign designed to help sponsors educate their plan participants about the many advantages of participating in an employer-sponsored defined contribution plan. Officially, PSCA said this year’s 401(k) day falls on September 10, but plan sponsors “are encouraged to celebrate any day of the year that works best for their employees.”
Continue reading “401(k) Day 2010 is about ‘Taking You There’” »
In this as, perhaps, many professional endeavors, it seems that the more you know, the more you know you don’t know. Moreover, the standards imposed on plan fiduciaries by the Employee Retirement Income Security Act (ERISA) are not only demanding, they may be the highest found in law—and with personal liability imposed, to boot.
About a year ago, I compiled a list of “10 things you’re (probably) doing wrong as a plan fiduciary.” By all accounts, it was well-read, much forwarded, and useful in terms of helping plan sponsors and retirement plan advisers highlight areas of possible improvement with your plan sponsor clients.
Continue reading “‘Wrong’ Headed? 10 things you’re probably STILL doing wrong as a plan fiduciary” »