Fiduciaries, Plan Administrator, Trustee, Investment Manager

Are You Excluding Part-Timers From the Retirement Plan?

Many plan sponsors mistakenly believe that they are not required to offer the retirement plan to part-time employees. Regardless of what type of retirement plan you have, all employees, including part-time employees that work 1,000 hours in a year, must be offered the retirement benefit. Though your plan may contain a service requirement that essentially prevents “part-timers” from ever becoming eligible (such as a one … Continue reading Are You Excluding Part-Timers From the Retirement Plan?

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

Last month we featured Part II of Oversimplification in Target Date Funds Endangers Participants’ Retirement Savings – How are custom solutions evolving to mitigate risk? Part II introduced version 2.0 of target date funds (TDFs), an approach which allows plan sponsors to develop a glidepath best suited for their plan’s demographics. For the final installment of our three-part series, learn about version 3.0 of TDFs. … Continue reading Oversimplification in Target Date Funds Endangers Participants’ Retirement Savings: How are custom solutions evolving to mitigate risk? Part III

Best Practices, Hardship Distributions

Best Practices in Hardship Distributions

These days,many plans are experiencing an uptick in the number of participant requests for hardship distributions. Much of this increased activity may be attributed to our prolonged and tepid economic recovery. As these requests are considered, you want to be sure not to act to the detriment of your plan. Improper handling of a hardship request can ultimately result in plan disqualification. It is important … Continue reading Best Practices in Hardship Distributions

Participants, Missing Participants, Education, Communication

Locating Missing Participants

At one time or another all plan sponsors will likely be in the position of having to locate missing participants. This may be related to delivery of regulatory required communications, distributing of assets, or communicating fund changes to active and/or terminated participants. If the delivery of necessary communications is encumbered because a participant cannot be located there exists a fiduciary requirement to perform a “reasonable … Continue reading Locating Missing Participants

Participants, Target Date Funds

The Most Important Assumption

Since the launch of the first target date fund (TDF) in 1993, its story has been an elegant and simple one—select the date around when the participant plans to retire and the fund will take care of everything. As the retirement date approaches, the TDF will rebalance to a more conservative mix, and manage that mix not only into retirement, but throughout it as well. The … Continue reading The Most Important Assumption