Get access to the exclusive HR Resources you need to succeed in 2018!
SHRM board member David Windley discusses how unconscious bias can derail workplace diversity efforts.
Is your employee handbook keeping up with the changing world of work? With SHRM's Employee Handbook Builder get peace of mind that your handbook is up-to-date.
Build competencies, establish credibility and advance your career—while earning PDCs—at SHRM Seminars in 12 cities across the U.S. this spring.
#SHRM18 will expand your perspective – on your organization, on your career, and on the way you approach HR. Join us in Chicago June 17-20, 2018
Members may download one copy of our sample forms and templates for your personal use within your organization. Please note that all such forms and policies should be reviewed by your legal counsel for compliance with applicable law, and should be modified to suit your organization’s culture, industry, and practices. Neither members nor non-members may reproduce such samples in any other way (e.g., to republish in a book or use for a commercial purpose) without SHRM’s permission. To request permission for specific items, click on the “reuse permissions” button on the page where you find the item.
A hearing by the U.S. House Subcommittee on Health, Employment, Labor and Pensions (HELP) held June 14, 2011, reviewed the state of employer-provided retirement plans in the U.S. and challenges facing plan sponsors, workers and retirees.
"Roughly 60 million workers participate in an employment-based retirement plan," said Rep. Phil Roe, R-Tenn., who chairs the subcommittee. "They, like so many Americans, have felt the impact of the recent recession and continue to experience tough times during this slow economy."
Expert witnesses described the difficulties confronting plans, including:
The 2008-09 recession."The impact of the recession and financial crisis on retirement security is twofold," said Alex Brill, research fellow at the American Enterprise Institute. "A decline in retirement assets, or the failure for assets to increase in value as expected, has left many workers and retirees with less than anticipated. Some older workers have chosen to remain in the workforce longer to offset the decline in retirement assets, but the overall unemployment rate of older workers remains high relative to pre-recession levels. And younger workers unable to find jobs due to the weak economy are not contributing to employer-provided retirement plans, thereby reducing future retirement income and security."
An uncertain regulatory environment. "In today’s globally competitive marketplace, employers are increasingly sensitive to the costs, risks and potential liabilities of all their activities," testified James Klein, president of the American Benefits Council. "Government policies that raise the costs, risks and potential liabilities associated with retirement plan sponsorship jeopardize the employer commitment to providing retirement benefits."
"One of the greatest impediments to the employer-provided system today is the lack of predictability of the rules and regulatory flexibility to adapt to changing situations," said Dennis T. Delaney, executive vice president of Ingram Industries. "Consequently, it is increasingly important to ensure that there are no statutory, practical or political barriers to innovation that would discourage participation in the private retirement system."
Proposal to broaden fiduciary standard. On the U.S. Department of Labor's proposalto expand the definition of “fiduciary” under the Employee Retirement Income Security Act (ERISA), Klein noted, "We are very concerned that an overly broad definition would actually have a very adverse effect on retirement savings by inhibiting investment education and guidance for plans and participants, raising costs and shrinking the pool of service providers willing to provide such investment education and guidance."
For transcripts of the testimony provided at the hearing, click here.
You have successfully saved this page as a bookmark.
Please confirm that you want to proceed with deleting bookmark.
You have successfully removed bookmark.
Please log in as a SHRM member before saving bookmarks.
Please sign in as a SHRM member before saving bookmarks.
Please purchase a SHRM membership before saving bookmarks.
An error has occurred
Recommended for you
SHRM Annual Conference & Exposition
SHRM’s HR Vendor Directory contains over 3,200 companies