Administration December 17, 2018

Yale Changes 403(b) Plan Investment Options

A university spokesperson told Yale News that the changes to the retirement plan were not in response to ongoing litigation.

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Yale University has made changes to its retirement plan, including simplifying investment options.

The Yale News reports that staff will be automatically enrolled into a new default investment option, the Yale Target-Date Plus Service.  The plan also now provides for 11 different investment options, including a new self-directed brokerage account (SDBA). According to the news report, the plan previously provided more than 100 investment options.

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Yale is currently involved in a lawsuit challenging recordkeeping and investment fees for its 403(b) plan. Among other things, the lawsuit alleges that the defendants offered too many investment options in the plan, resulting in decision paralysis, higher costs, and dilution of Yale’s bargaining power. The plaintiffs also allege that the defendants imprudently retained poor-performing investments in the plan.

A university spokesperson told Yale News that the changes to the retirement plan were not in response to the ongoing litigation, explaining that the policy revisions were underway before the lawsuit was filed.
Products December 17, 2018

Gallagher Creates Financial Wellness Consulting Practice

The Financial & Retirement Services practice is designed to alleviate the weight of student loan debt; planning for on-time retirement; and more.

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As more workers are stressing over finances, employers and providers are being pushed to search for avenues promoting financial wellbeing. Gallagher has created a unified consulting practice focused on delivering group and individual financial wellbeing solutions.

Called the Financial & Retirement Services practice, the initiative aims to optimize “organizational wellbeing,” with accessibility to skill sets of retirement planning experts; investment solutions; independent fiduciary services; actuarial consulting services; executive benefit retention programs; and individual life insurance needs, according to the company.

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“Whether alleviating the burden of student loan debt, preparing for on-time retirement, reducing turnover through executive retention programs, or monitoring an organization’s institutional investment strategy; our integrated Financial & Retirement Services practice will help overcome the obstacles individuals and organizations are facing and allow them to create a better workplace,” says William Ziebell, president, Gallagher Employee Benefits Consulting and Brokerage.

The number of financial wellness solutions has climbed in the past years, as the weight of financial stress leads to unhealthy behaviors—including a lack of productivity in the workplace. Now, employers are focusing on what wellbeing platforms best suit their employee base. According to Gallagher’s 2018 Benefits Strategy and Benchmarking Survey, more than six out of 10 employers (62%) are “addressing the negative affect of financial stress on productivity by providing employees with access to financial advisers,” and 47% are “providing financial literacy education to help employees make better saving and spending decisions.”

A 2018 Financial Finesse analysis showed just how financial wellness programs impact retirement readiness. A worker who is consistently engaged in a financial wellness platforms will on average, increase their retirement contributions by 38%, with the average age to retire and replace 80% of income dropping from 68.5 to 66. 96 years. “Repeat engagement in financial wellness programs drives improvement in overall financial health, so this isn’t a one-and-done process,” said Financial Finesse.

Jeff Leonard will lead Gallagher’s new practice as North America Financial & Retirement Services leader. The specialty practice leadership team includes Dean Clune, Retirement Plan Consulting; Rich Brock, Executive Benefits Consulting; Michael Johnson, Investment & Fiduciary Consulting; and business unit leaders Malcolm Sklar, Luke Kaplan, and Stan Matus for Individual Life & Wealth components.


At Gallagher, the Financial & Retirement Services structure aligns with the Gallagher Better Works approach, which establishes benefit and human resources (HR) programs to promote financial and organizational wellbeing. More information on consulting services at Gallagher can be found here. 

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