(b)Lines Information and Insights for the 403(b) community / brought to you by PLANSPONSOR.
August 3rd, 2018

Plan Sponsors Shouldn’t Fear Making Settlor Decisions

Retirement plan sponsors often fear participant backlash when making decisions that could actually help improve participant outcomes, but the law is on their side, as plan amendments are considered settlor functions. For example, adding automatic deferral escalation and stretching the match are settlor functions because they are plan amendments, even if to some participants they seem to be not in their best interest. Read more >

Half of Retirement Savers Think They Are Behind

Among Americans between the ages of 45 and 65 who are saving for retirement, Allianz Life found that 49% are “chasers” who think they need to catch up on their retirement savings. Ninety-eight percent wish there was a way to make up for lost time, but 63% say they cannot take the chance of investing in higher risk financial products. Read more >
ASK THE EXPERTS
Groom Law Group and Cammack Retirement Group will field your questions concerning 403(b) plans and regulations. Email rebecca.moore@strategic-i.com with Subject Ask the Experts

NYU Claims Victory in 403(b) Plans Lawsuit

“While the Court finds the level of involvement and seriousness with which several Committee members treated their fiduciary duty troubling, it does not find that this rose to a level of failure to fulfill fiduciary obligations. Between Cammack’s advice and the guidance of the more well-equipped Committee members, the Court is persuaded that the Committee performed its role adequately,” a federal just wrote in her opinion. She also found that the evidence does not support a failure or loss with regard to recordkeeping fees, or with regard to the two plan investment options at issue in the case. Read more >

Cash Incentives Boost Financial Wellness Program Performance

According to a report from Bank of America Merrill Lynch, both employees and employers agree that financial wellness programs are effective at reducing financial stress. In fact, fully 91% of employees who participate in a workplace financial wellness program say these resources have been effective at helping them to reduce debt, increase savings or otherwise improve their financial outlook in at least one material way. The report shows employees who do not feel financially well are most concerned about shorter-term financial goals, whereas employees who do feel financially well are most concerned about long-term goals. Read more >

Editorial: Alison Cooke Mintzer alison.mintzer@strategic-i.com

Advertising: Paul Zampitella paul.zampitella@strategic-i.com

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