Company Stock and Fiduciary Considerations

In recent years, there has been a substantial increase in litigation involving retirement plans that have invested in the stock of their sponsoring company. The only definitive way for plan fiduciaries to avoid liability with respect to plan investments in employer stock is to avoid such investments altogether. Nevertheless, many employers, believing that employer stock … More Company Stock and Fiduciary Considerations

Should a Retirement Plan Implement a Fee Policy Statement?

For the client who may be concerned about fiduciary compliance, a fee policy statement may give comfort. Like all other fiduciary actions, the value of this statement is a function of how well it is written (not too loose nor too tight) and how consistently a plan sponsor actually describes/practices the process documented. So, a … More Should a Retirement Plan Implement a Fee Policy Statement?

Recruit, Retain, Retire – Reframing Financial Wellness

So much of the financial wellness conversation to date has focused on the potential health care cost mitigation of adopting organizations. A more effective angle, however, may come in the form of the company’s increased ability to recruit, retain, and allow a happier workforce to retire on time. This provides advisors with a unique way … More Recruit, Retain, Retire – Reframing Financial Wellness

May Any Employee Join the Retirement Committee?

Upon first blush, to the extent an employee from the general populace can and wishes to make a contribution as a committee member, there seems to be no reason why they shouldn’t participate on the committee. In practice, most committees consist of executives from finance (preferably the CFO), benefits and human resources. Due to the potential … More May Any Employee Join the Retirement Committee?

Partial Plan Terminations

A partial plan termination occurs when 20 percent or more of a company’s employees are laid off in one year. Routine turnover during the year is generally not considered a partial plan termination. To determine whether your turnover rate is routine, consider the following factors: What was your turnover rate during other periods and what … More Partial Plan Terminations

Millennial Workers Require Special Plan Sponsor Menu Design

Millennials are the largest demographic cohort in the nation, U.S Census Bureau data shows. And up to 80 percent are already saving in their employer-sponsored retirement plans, according to a 2015 report from Bank of America Merrill Lynch. The newest generation of workers—which the Pew Research Center defines as those born between 1981 and 1997—has … More Millennial Workers Require Special Plan Sponsor Menu Design

Fiduciary Risk when Using Industry Average Reports to Determine Fee Reasonableness

This is a very important and often misunderstood issue. Industry average fee data can serve as a good general “second opinion” of fee reasonableness. The industry recognizes that fees can be very plan-centric in nature.  National averages may not capture the nuances of plans that drive cost (both in a positive and negative manner). Thus … More Fiduciary Risk when Using Industry Average Reports to Determine Fee Reasonableness