Retirement Plan Investment Design

“5…4…3…2…1…liftoff!” Ultimately the value a retirement plan advisor brings to plan clients can be measured in plan outcomes and participant readiness for retirement.  Offering meaningful processes for investment selection and monitoring, benchmarking vendor services and fees, and supporting plan fiduciaries are now just table stakes.   Advisors who cannot offer independent processes for supporting plan clients in these areas will not be competitive, especially on larger … Continue reading Retirement Plan Investment Design

Investment Policy Statement, ERISA, DOL

Fiduciary Seminar Alert

Plan fiduciaries have a primary responsibility to understand and prudently discharge their duties in accordance with ERISA and their plan document. To complement the fiduciary consulting services we make available to you, consider taking advantage of fiduciary education sessions hosted by the DOL. The website provided below has great content on other fiduciary topics as well. Please let us know if we can assist you … Continue reading Fiduciary Seminar Alert

Plan Expenses, Plan Demographic, Plan Services, Participant Communication

Complying With ERISA 404(c)

According to ERISA, plans intending to comply with 404(c) must provide that participants: Have the opportunity to choose from a broad range of investment alternatives (which are adequately diversified); may direct the investment of their accounts with a frequency which is appropriate; and can obtain sufficient information to make informed investment decisions. The plan sponsor must provide annual written notification to participants with its intent … Continue reading Complying With ERISA 404(c)

Safe Harbor, Regulations

When “Float” is a Bad Thing

What is “float”? Float refers to the earnings or “compensation” accruing to a service provider while a plan’s contribution remittance (or other assets held in suspense) is awaiting deposit or distribution. With many service providers, a contribution received after 2 p.m. EST will not be deposited until the next day. Any return on these remittances that are held overnight (i.e. if placed in an interest … Continue reading When “Float” is a Bad Thing

How to Encourage Positive Retirement Outcomes in Tax Exempt Plans

One of the major trends right now in retirement plans is the use of automatic plan design features to encourage plan participation and retirement participation. We have seen a steady increase in adoption of automatic plan design features, at large, in the past few years; however, tax exempt organizations seem to have a different attitude towards the implementation of these strategies. Compared to the general retirement … Continue reading How to Encourage Positive Retirement Outcomes in Tax Exempt Plans

Oversimplification in Target Date Funds Endangers Participants’ Retirement Savings How are custom solutions evolving to mitigate risk? Part II

Last month we featured Part I of Oversimplification in Target Date Funds Endangers Participants’ Retirement Savings – How are custom solutions evolving to mitigate risk? Part I introduced version 1.0 of target date funds, now learn about version 1.0’s evolution to version 2.0, that sets the stage for version 3.0, which we will end with next month.< Version 2.0: Introducing New Choices As the single-manager … Continue reading Oversimplification in Target Date Funds Endangers Participants’ Retirement Savings How are custom solutions evolving to mitigate risk? Part II