IRS Retirement Plan Announcements for the Recent Hurricanes and California Wildfires

Many individuals have recently been significantly impacted by both the hurricanes and California wildfires and the Internal Revenue Service (IRS) provided relief for qualified individuals in retirement plans through several announcements. In addition, President Trump signed the Disaster Tax Relief and Airport and Airway Extension Act of 2017 (“Act”), which provides tax relief for individuals … More IRS Retirement Plan Announcements for the Recent Hurricanes and California Wildfires

Behavioral Finance: Can Enhanced Active Choice Help Increase Participation?

Deferred compensation programs typically offer open enrollment year-round. Employees can choose to participate when they feel ready and motivated to do so. This traditional enrollment method is known as the “opt-in” approach. However, many employers are moving to an “opt-out” or “enhanced active choice” approach where employees are asked to specifically indicate that they do … More Behavioral Finance: Can Enhanced Active Choice Help Increase Participation?

Q4 2017 Market Review

Equity markets continued their rally and reached new highs during the fourth quarter. U.S. equities posted a positive 6.3 percent return for the fourth quarter (Russell 3000). Equity returns were fueled by accelerating global growth, continued low interest rates and inflation, and the tax reform bill that passed late in the quarter. After outperforming domestic … More Q4 2017 Market Review

Internal Benchmarking for Continuous Improvement

External benchmarking helps the plan sponsor identify areas where their plan is behind peers in the industry and sets goals for plan growth and improvement. Internal benchmarking helps plan sponsors measure internal changes over time, and can help determine if the plan sponsor is meeting the goals for plan growth and improvement. Identifying similar plans … More Internal Benchmarking for Continuous Improvement

Understanding Fees and Avoiding Fee-based Litigation

There are many different fees presented in DC plans and may include investment management fees, management fees, administrative fees, revenue sharing fees and more. It is imperative that plan sponsors are aware of the various fees charged to either participants or plan sponsors. These fees can be charged as asset-based, dollar-based or a combination of … More Understanding Fees and Avoiding Fee-based Litigation

Healthcare Update

Healthcare costs often represent the largest retiree expense. Additionally, healthcare costs are increasing at a rate faster than the CPI (inflation). One 2016 study found that a healthy retiring couple would need $275,000 for out-of-pocket medical expenses over the course of their retirement. Creating awareness around healthcare costs is a critical goal.¹ A retiree needs … More Healthcare Update

Financial Wellness “To” and “Through” Retirement

Many employer survey results indicate that 92 percent are expanding financial wellness programs; one-third of the workforce is 50 or older; and 73 percent are planning for increased healthcare costs due to an aging workforce.¹ Holistic planning is critical. In addition to any DC assets, the following factors can also be considered: outside assets, income … More Financial Wellness “To” and “Through” Retirement

Lessons from Behavioral Economics for Public Pension Plans

Everyone has behavioral biases. Many people have a bias for the present over the future, for inattention and for heuristic thinking (stimulating interest as a means of furthering investigation). Retirement planning is complex with different designs offered— defined benefit (DB) versus defined contribution (DC) versus hybrid plans. Additionally, there are supplemental DC plans and pre-tax … More Lessons from Behavioral Economics for Public Pension Plans