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 … More Are You Excluding Part-Timers From the Retirement Plan?
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 … More Oversimplification in Target Date Funds Endangers Participants’ Retirement Savings How are custom solutions evolving to mitigate risk? Part III
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 … More Best Practices in Hardship Distributions
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 … More Locating Missing Participants
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 … More The Most Important Assumption