Is Your Plan Up-to-Date When it Comes to:
Recent Compliance and Regulatory Changes?
In the last several years, the Department of Labor has increased the regulatory burden for plan sponsors. How significant are these changes? For one, you are now required to provide more information to plan participants. Worse, plan sponsors can now be held liable should their service providers fail to comply with these new rules.
The Plan Option Menu?
Research shows out-dated investment-based plan menu options actually harms employees. A category or tiered option menu that incorporates employee behavior, rather than an investment style-box, has been proven to both increase employee participation and increase employee savings rates. In light of this, plan sponsors need to be prepared to answer why they have failed to update their plan menu options to this new behavior-based framework.
Retirement Readiness – The New 401k Plan Benchmark?
In addition to the new plan menu option framework, since most plans now offer auto-enrollment and auto-escalation (ask us if you are not familiar with these important features), traditional benchmarks such as participation, deferral rates, and even investment option performance have become less important than the one singular purpose of an ERISA retirement plan: getting the employee ready for retirement. A multi-media education program can offer easy-to-understand employee training for the many different learning styles people exhibit. Research shows, of the four components to achieving a comfortable retirement, investment selection is the least important. Yet almost every employee education program spends more time on investment selection that the sum total of the time spent on the three most important components.
We have helped plan sponsors like you address these issues. Quickly. Efficiently. And in a well-documented manner.