Corporate, multiemployer and public plan sponsors have been drawn to variable benefit plans for their ability to minimize costs while offering guaranteed income to participants.
Sponsors also say the fiduciary oversight and lower fees that come with staying in the plan help participants.
DC plan sponsors should examine a potential investment manager’s approach to governance as well as investing, and they should review past performance results.
It could be helpful to hire a third-party specialist to do a risk assessment of the handling of participant data.
It’s important for plan sponsors to define plan goals and what they are going to measure, and the defined metrics should be things they can influence.
They should know the right questions to ask as advisory firm merger and acquisition activity continues to increase.
The nonqualified plans offered to top executives at for-profit companies are subject to different rules than those offered to executives at nonprofits.
Companies that measure defined benefit plan funded status also point out that legislation has been introduced that would provide more relief for plan sponsors.
A properly drafted investment policy statement can offer guidelines and protection for plan sponsors—if it is followed.
Spouses of service members face unique challenges in the workforce, including unemployment and relocations, that can make it difficult to save in retirement plans.
Relationships are important, especially considering the differences between the K-12 403(b) market and other DC plan markets.
While not required by ERISA, attorneys say a committee charter is a best practice that can help a plan run more smoothly—and help fiduciaries avoid litigation and penalties.
Plan sponsors should stress the need to save for retirement and allay fears about market volatility, among other things.
Defined benefit plans that use an LDI strategy faced less volatility over the year, and funded status improvements were helped by gains in risk assets.
Retirement plan experts offer advice to employers that are considering whether they should move to a pooled employer plan or stick with their single-employer plan.