PLANSPONSOR Magazine

COVER

21. Get Personal

Not a synonym for education or guidance, “financial advice” for retirement plan participants is narrowly defined under the Employee Retirement Income Security Act (ERISA). Those hired  to deliver advice  are considered fiduciaries. In this context, advice means investment recommendations given on a regular basis, under an agreement that this will serve as the primary basis…

Cover |April 2014

3. Automate Savings

James YangAn August 2013 analysis from Fidelity Investments shows hundreds of dollars can be added to participants’ post-retirement incomes through automatic-enrollment and -deferral escalation features.According to Fidelity, raising...
Cover |April 2014

4. Ensure Reasonable Fees

In its preamble to the Employee Retirement Income Security Act (ERISA) Section 408(b)(2) service provider disclosure rules, the Department of Labor (DOL) stated: “Now, more than ever, it...
Cover |April 2014

5. Diversify

James YangIt’s all about diversification. Including some type of alternative investment as a core menu offering is “widely done” by defined contribution (DC) plan sponsors, says Rod Bare,...
Cover |April 2014

6. Keep It Steady

Stable value still has a strategic role as a core menu option for 401(k) plans, says Rod Bare, a Chicago-based defined contribution (DC) consultant at Russell Investments. “[It]...
Cover |April 2014

7. Discourage Loans

The big question is that, with the average 14.4% of plan participants having outstanding loans last year, what percentage of those participants will repay themselves, and will they,...
Cover |April 2014

8. Motivate Them

How much a company matches, and how, are important factors in the participant retirement readiness equation, as the match number often determines deferral rates. Multiple studies, including those...
Cover |April 2014

9. Provide Other Savings Options

James YangMany employers go beyond a basic 401(k) plan to provide their employees with the means to diversify their retirement savings. Three common offerings are health savings accounts...
Cover |April 2014

10. Preserve Their Savings

Preserving retirement savings is simple when participants work for one company year after year and accumulate all assets within one plan. But how can employees keep their savings...
Cover |April 2014

11. Use the Right Benchmarks

Plan sponsors strongly favor participation rate as their No. 1 plan benchmark—but the measuring of projected income replacement is key. Unfortunately, this figure can vary greatly and will...
Cover |April 2014

12. Show Them Where They Stand

James YangThe vast majority of retirement plan participants have no idea how much money they need to save for retirement, or how what they have saved can be...
Cover |April 2014

13. Make It Last

Systematic withdrawals—lump sum or partial—are distributions that allow participants to schedule a series of recurring payments, thus creating a predictable stream of retirement income.
Cover |April 2014

14. Benchmark Your Participants’ Plan

“The only way to make it to the finish line is to save money,” says adviser Jason Chepenik, managing partner at Chepenik Financial in Winter Park, Florida.Sponsors following...
Cover |April 2014

15. Guarantee It

Four out of five retirement plan participants believe that a guaranteed monthly payout benefit is a “must have,” even if it means compromising some access to their retirement...
Cover |April 2014

16. Enhance Their Understanding

Until recently, the focus of sponsors’ education for their retirement plan participants was limited to enrollment, investments and other plan- or retirement-specific information. Today, more sponsors are embracing...
Cover |April 2014

17. Know Your Audience

Demographic data can be useful in helping plan sponsors to understand the financial and savings priorities for different groups.Women Live LongerA report from the U.S. Government Accountability Office...
Cover |April 2014

18. Put Numbers in Context

“Just as when employees are young and juggling how to save for a house, college and retirement, so, later in life, the savings goals shift to retirement and...
Cover |April 2014

19. Keep It Current

James YangAs smartphones and tablets expand their role in the work/life balance of most Americans, the retirement plan industry has begun to capitalize on these new capabilities, and...
Cover |April 2014

20. Integrate Income

The market for products that generate reliable income in retirement is growing. A survey conducted by Prudential in 2012 shows that participants are interested in such products. However,...
Bells & Whistles |April 2014

Bells & Whistles

Recent product introductions that may improve participant outcomes
Voice |April 2014

A Call to Action

“Knowing what’s right doesn’t mean much unless you do what’s right.” —Theodore Roosevelt
Tidbits |April 2014

Tidbits

Quotes, survey statistics and musings to use in employee communications, or just for a break from the grind.
Research |April 2014

Smarter Than We Thought

2014 PLANSPONSOR Participant Survey: 401(k) participants may be more aware—and expect more of you—than you think.
Analyze This |April 2014

Competence Equals Confidence

If participants and plan sponsors want increased levels of confidence in their retirement security—and their ability to deliver retirement security—both parties must contribute more.