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| Benefits & Administration |
| Plan Sponsors Offer More Robust Auto Features |
| Seven out of 10 (70%) companies offer automatic
enrollment features in their 401(k) plans, according to an Aon Hewitt pulse
survey covering the fourth quarter of 2014. The retirement and health solutions
company surveyed approximately 100 companies with defined contribution (DC)
plans, finding 29% of employers auto-enroll their employees in the company plan
at a savings rate that is at or above the full company match threshold. Another
27% auto-enroll their employees below the full match rate, but automatically
escalate contributions over time, enabling workers to save enough to receive
the full match.Read more > |
| How to Select a Lifetime Income Product Provider |
| Plan sponsors do not have to provide in-plan
lifetime income solutions for their plan participants. However, the topic is
heating up as the issue of how participants will manage account balances to
provide sustainable lifelong income garners more attention. In a whitepaper,
“Fiduciary Considerations in Selecting a Lifetime Income Provider for a Defined
Contribution Plan,” Fred Reish and Bruce Ashton, Drinker Biddle attorneys who
specialize in Employee Retirement Income Security Act (ERISA) issues, and Steven
Kronheim, vice president and associate general counsel at TIAA-CREF say fiduciaries
responsible for selecting annuity providers should consider four main factors.Read more > |
| Regulations, Work Force Changes Challenge Plan Sponsors |
| Apart from the statutory changes to the Employee
Retirement Income Security Act (ERISA), respondents to a survey fielded by Buck
Consultants noted other changes in the 40 years since ERISA was enacted that
directly and indirectly impact employee retirement benefits. These include such
trends as increased employee turnover and the decline of “career” employees, as
well as a graying work force that might not be able to retire because they have
not saved enough. Read more > |
