The Government Accountability Office (GAO) suggested that
retirement plan sponsors and participants should be made more
aware of the risk that some investments may have distribution
restrictions.
Continue reading “DoL Asked to Add to Participant Disclosure Rules” »
A U.S. District Court judge has granted final approval of an $18.5-
million settlement in an excessive 401(k) fee suit.
The agreement ends proceedings in Kanawai v. Bechtel Corp., in which two former Bechtel employees alleged the company violated its Employee Retirement Income Security Act (ERISA) fiduciary responsibilities by not using its size to get lower fees from vendors.
Continue reading “Court Gives Final Approval to 401(k) Fee Case” »
Feb 03, 2011 — The ERISA Industry Committee (ERIC) warned the Department of Labor (DoL) about the unintended consequences that can result from broadening the definition of fiduciary. —
Continue reading “ERIC: Fiduciary Redefinition Could Discourage Assistance” »
Feb 03, 2011 — The Securities Industry and Financial Markets Association (SIFMA) has asked the Department of Labor (DoL) to reconsider its proposed rule that would redefine the term “fiduciary” under the Employee Retirement Income Security Act (ERISA). —
Continue reading “SIFMA Asks DoL to Reconsider Fiduciary Definition Change” »
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” »
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?” »