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July 31st, 2018 |
TIAA Finds Retirement Plan Leakage Offsets Automatic Enrollment BenefitsWith benefits from kick starting retirement savings to fostering participant engagement, automatic enrollment has proven itself to be an important plan feature. Yet, this does not acquit it from including its own set of drawbacks. A recent TIAA survey examined the utilization of outstanding loans and withdrawals in accordance to automatic enrollment, otherwise known as “leakage” and found that “among households under the age of 55, each dollar contributed to a 401(k) plan or similar tax-advantaged retirement account is offset by approximately 40 cents in pre-retirement taxable withdrawals.”Read more > |
Opportunities KnockSponsors of defined contribution (DC) plans can turn to a few simple plan design features—all typically underutilized—that can increase participants’ retirement readiness.Read more > |
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ERIC Calls Foul in DOL’s Missing Participant PushIn an open letter asking for more detailed guidance, the ERISA Industry Committee spells out what it says are “examples of missteps” by the Department of Labor (DOL), including “issuing letters asserting breaches of fiduciary duty when there is no applicable legal guidance.”Read more > | Bill Would Establish Personal Savings Accounts Based on TSPSen. Jeff Merkley (D-Oregon) has reintroduced the American Savings Act. Modeled on the Thrift Savings Plan (TSP) used by federal workers and members of Congress, it would give every worker who does not already have access to a retirement savings plan through their employer their own personal retirement savings account. Most notably, workers would be able to take these savings accounts with them seamlessly as they switch jobs.Read more > |
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