How Match Thresholds and Default Rates Impact Savings
Employers can keep costs down and encourage more robust savings in auto enrollment plans by getting creative with "stretch matching" and other design features.
DOL Seeks Input on Lifetime Income Options
The U.S. Department of Labor (DOL)'s Employee Benefits Security Administration is seeking comments before issuing a proposed rule on providing lifetime income options, such as annuities, to participants in 401(k) and 403(b) defined contribution plans.
Boosting 401(k) Plan Effectiveness
Offering features such as auto enrollment, Roth 401(k) options and financial counseling can improve plan participation and awareness, according to plan sponsors.
De-Risking Pension Plans
Lowering overall risk has become a popular management technique for defined benefit plans.
Reliance on Expert Did Not Satisfy Duty of Prudence
The 9th U.S. Circuit Court of Appeals affirmed that a plan administrator violated the Employee Retirement Income Security Act (ERISA) when it decided to include retail-class shares of mutual funds in the 401(k) plan menu without investigating the possibility of institutional-share class alternatives.
Employer Contributions Don't Improve Pension Funding
Large employer contributions to defined benefit pension plans have been more than offset by growth in liabilities—and four consecutive years of declining interest rates.
Is Fee Levelization Right for Your 401(k) Plan?
As additional transparency reveals plan fees, savvy sponsors will have a unique opportunity to shape their future methods of fee allocations for participants.
More 401(k) Loan Taking by 'Sandwiched' Employees
Increased loan activity among older participants is concerning because those are the years when workers can start to make catch-up contributions and focus on preparing for retirement.
IRS Issues Procedures for Pre-Approved 403(b) Plans
The IRS released procedures for vendors sponsoring pre-approved section 403(b) defined contribution plans to secure a pre-approved opinion or advisory letter.
Render Plan Audits Painless
Prepare for a Department of Labor audit by reviewing retirement plans periodically in order to catch and correct red flags before they become major issues.
Budget Proposal Would Cap Retirement Accounts
President Barack Obama's proposed federal budget, released on April 10, would cap individual tax-advantaged retirement savings at roughly $3.4 million next year. Critics charge small business owners and their employees would be disproportionately affected.