Are participants paying their fair share of your plan’s recordkeeping and administrative fees? It may not be apparent, but the way some plans are structured, one participant may be paying far more in plan fees than another. A lack of transparency around fees for services provided can make this topic complex and lead to problems for fiduciaries, who often aren’t even aware of unfair fee practices. How can plan sponsors make sure fees are distributed evenly across your participants? Consider a process called “fee leveling,” which we consider a best practice for retirement plans. Read more
The number of discretionary consulting arrangements used by plan sponsors has more than doubled since 2011.1 The trend, also called outsourced chief investment officer (OCIO) or a 3(38) arrangement (referring to the applicable section of Employee Retirement Income Security Act of 1974 (ERISA), has increased as plan sponsors look for ways to reduce fiduciary liability, increase decision-making efficiency, and rely on their investment consultant’s expertise. What is the difference between a traditional, or 3(21) consulting arrangement, and a 3(38) discretionary arrangement, and why would a plan sponsor choose to go discretionary?
The 2017 Retirement Confidence Survey found that 3 in 10 workers worry about their personal finances while at work.1 What does this mean for employers, and what can you do about it? Research into financial wellness is beginning to show just how much of a toll financial anxiety can take on workers. Financial wellness is more than just a trendy term; it points to a very real problem, but there are solutions. Read more
A recent survey from J.P. Morgan reveals that workers under the age of 30 want their employer to make financial decisions about their retirement savings! According to the survey, 69 percent of this younger group identify themselves as “do-it-for-me” investors, compared with 56 percent of those over age 30. And a whopping 82 percent want their employer to actually make their investment decisions for them (versus 73% for those over age 30)! Read more
If you’re a plan sponsor, you probably know that most workers are not saving enough for retirement. Only 21 percent of workers in America are very confident they will have enough money to live comfortably throughout retirement! 1 Next week is America Saves Week, and is a great time to find ways to help. Read more
Most people are probably familiar with the well-known serenity prayer: “Grant me the serenity to accept the things I cannot change, courage to change the things I can, and the wisdom to know the difference.” First coined by American theologian Reinhold Niebuhr, he probably didn’t know how well this could be applied to retirement planning! Read more
Proactive retirement planning is the key to financial freedom and a secure retirement. The National Retirement Planning Coalition, a group of education, consumer advocacy, and financial services organizations that joined together to increase retirement planning awareness, has announced that April 11-15 2016 is National Retirement Planning Week®! Whether you are a retirement plan sponsor or a plan participant, this is a great time to get organized. Below are some ideas for how to observe National Retirement Planning Week®: Read more
The recent passage of the Bipartisan Budget Act of 2015, which helped avert yet another government shutdown, has some notable implications for those hoping to maximize their Social Security benefits. It calls for the closure of several loopholes that have allowed individuals to collect larger benefits than originally intended. Read more