Phased retirement includes a range of flexible retirement approaches that would allow employees approaching normal retirement age the option to reduce the hours worked while phasing into complete retirement. For employees, phased retirement may be seen as a benefit by many older workers. It allows them to gradually ease into retirement while maintaining a higher … Continue reading Have you ever considered offering a Phased Retirement Program?
T. Rowe Price did a deep dive into its recordkeeping data and surfaced with a few important points. Its “Reference Point Report is an annual client data benchmarking report so plan sponsors can review trends and benchmark their progress and participant behavior across the firm’s client base… 'We continue to see the importance and significant … Continue reading Good News 401(k)
This month’s employee memo encourages employees to conduct a regular examination of their retirement plan to determine whether any changes need to be made. Download the memo from your Fiduciary Briefcase at fiduciarybriefcase.com. Please see an excerpt below. It is important to conduct regular check-ups on your retirement plan to make sure you are on … Continue reading Participant Corner: Retirement Plan Check-Up
The payment of expenses by an ERISA plan (401(k), defined benefit plan, money purchase plan, etc.) out of plan assets is subject to ERISA’s fiduciary rules. The “exclusive benefit rule” requires a plan’s assets be used exclusively for providing benefits. ERISA also imposes upon fiduciaries the duty to defray reasonable expenses of plan administration. General … Continue reading Allowable Plan Expenses: Can the Plan Pay?
For almost a century, collective investment trusts (CITs) have played an important role in the markets. They were originally introduced in 1927. According to a 2020 study, they are now used in more than 70 percent of plans.¹ For the vast majority of their existence, CITs were available only in defined benefit (DB) plans. In … Continue reading Collective Investment Trusts — The Fastest Growing Investment Vehicle Within 401(k) Plans
Can you hear the bells ringing? It’s that time of year to review your to-do list of fiduciary responsibilities. Ask yourself the following questions to make sure you are on top of your responsibilities and liabilities. 1. Are you practicing procedural prudence when making plan management decisions? 2. Do you clearly understand the Department of … Continue reading It’s That Time Again! Back-to-School for Fiduciaries
This month’s employee memo encourages employees to make small lifestyle changes to reduce their out-of-pocket health costs. The memo shows the difference in savings between an average-managed patient and a well-managed patient. Please see an excerpt below. Believe it or not, staying healthy just might make you wealthy. With small lifestyle changes and healthy choices, … Continue reading Participant Corner: Good Health is the Best Wealth
With most retirement plans, the fiduciary responsibility of selecting and monitoring the plan’s menu of investments is designated to a retirement plan investment committee. This committee usually includes financial officers and human resources officers of the employer. The committee meets periodically (anywhere from annually to quarterly) to consider agenda items including investment due diligence, fees … Continue reading What Constitutes Proper Documentation of Retirement Plan Committee Meetings?
Businesses understand how vital it is for employees to understand retirement options and are increasingly including employee education in fiduciary risk management, whether it’s in the form of one-on-one counseling or educational seminars. Take a look at these reasons why you should communicate with and educate your employees. Gossip Can Be Dangerous If retirement opportunities … Continue reading Why You Need to Communicate with Employees
Subsequent to the 2012 implementation of ERISA fee reporting regulations (ERISA 408(b)(2) & 404(a)(5)), the Department of Labor (DOL) began to consider the appropriateness of the allocation of plan fees among participants. This is a subject that generally had not been on the radar screen of many plan fiduciaries, but once identified, tends to generate … Continue reading Are Your Participants Experiencing a Fee Imbalance?