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If it seemed to you that investment and funding decisions for your defined benefit plan in 2012 were at odds with each other, you weren’t alone. In its annual report on DB plans, global employee benefits consultant Towers Watson says that in 2012, once again there were many investment contradictions for U.S. DB plan sponsors: […]
Education is often the best antidote to negative news about 401(k) plans. With this in mind, several retirement industry spokesmen have provided statistics to defend retirement plan management practices after the recent airing of a TV documentary that may have concerned some 401(k) participants. The U.S. retirement investment community was quick to react to the […]
Although many 401(k) plans offer participants loans, a statistic that plan sponsors don’t want to see is the number and size of those loans increasing. But some of them are seeing just that, according to Wells Fargo. A recent study by the banking company of fourth-quarter 2012 activity at the defined contribution plans it administers […]
Most of the money contributed to traditional individual retirement accounts comes from rollovers, but the choices involved in moving 401(k) savings to an IRA or from one employer-sponsored plan to another should be made easier and more efficient. That’s the finding of the U.S. Government Accountability Office in its latest report, “401(K) Plans: Labor and […]
New guidelines from the U.S. Department of Labor help defined benefit plan sponsors see and report exactly what’s changed for their calculation of pension plan liabilities under Moving Ahead for Progress in the 21st Century Act requirements. Several changes to ease funding requirements for DB plans arrived with the start of MAP 21’s transportation reauthorization […]
Fiduciaries of 401(k) plans were reminded by a recent court decision that it’s best not to accept financial consultants’ investment advice for a retirement plan’s assets without careful scrutiny. At the same time the case, which raised other issues important to managing defined contribution plans, resulted in several rulings in the plan sponsor’s favor. Facts […]
Plan participants’ shortfalls and worries about retirement preparedness can provide an opportunity for plan sponsors to fill the void with participant education, tools and financial advisory services. Less than half of Americans are taking basic steps to prepare for retirement, and their confidence about how much they need to put away to be financially comfortable […]
On March 28, the IRS issued long-awaited guidance to help 403(b) retirement plan sponsors comply with written plan document requirements in the form of Revenue Procedure 2013-22, which contains a “master and prototype program,” and an information package with sample plan provisions. As a result, beginning June 28, 2013, the IRS will accept plan sponsor […]
Employers could use auto-escalation as a way to encourage 401(k) participants to increase their contributions and reduce the number of employees missing out on matching contributions from the plan sponsor. That’s the finding by WorldatWork and the American Benefits Institute, which said that nearly a third of U.S. retirement plan sponsors they surveyed think more […]
Data from late 2012 show women in the United States closing the gap in defined contribution plan balances and savings rates compared with their male counterparts, but gaps remain in women’s retirement funding strategies that plan sponsors can help address. Although female plan participants long have been known to save less than men for retirement, […]