The pandemic has highlighted the need for plan sponsors to actively encourage revised beneficiary designations and have missing participant procedures in place.
With account values down, income tax on amounts converted will be lower, if participants have the money to pay them.
Markets are rebounding, but discount rates used to measure liabilities are falling, and pension consultants wonder if pending legislation will provide funding relief for plan sponsors.
Directors with state-run plans in California and Illinois discussed details of their programs and changes caused by the COVID-19 pandemic.
The benefits of keeping assets in the plan should be communicated to retirees, and plan sponsors should adjust design to accommodate income strategies.
The effects of the COVID-19 pandemic have plan sponsors contemplating what to do about scheduled re-enrollments, the (RFP) process and fund mapping during recordkeeper conversions.
Plan sponsors can show compassion for their recordkeepers, while at the same time ensuring their plans are operating smoothly.
Coupling more generous loan programs with robust educational resources is a good place to start.
Sources from CalPERS and NYCRS share discussions they've had and actions they've taken in response to the financial hit of COVID-19.
The coronavirus pandemic has revealed the fragility of retirement security in our current landscape and sparked conversation about design and policy needs.
Financial wellness programs and broader use of auto-enrollment in DC plans could help public sector employees who are missing out on a major source of retirement income.
The growing need for public-sector employees has retirees willing to return to work, but limitations on public pensions and Social Security may deter them.