Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
July 16th, 2015
Benefits & Administration
Beyond Auto-Enrollment: Managed Accounts and Advice
For years, the retirement planning industry pondered how to transform nominal participants into committed investors and savers, “and do so in a way that’s legal, appropriate, allowed and understandable to the participant,” says Steve Dorval, vice president wealth solutions for John Hancock Retirement Plan Services. The first steps are getting participants into the plan and encouraging them to save at appropriate levels. The search for better investment options produced balanced funds, along with target-risk and the increasingly popular target-date funds (TDFs), Dorval says. “The logical next steps along that continuum have been more personalized advice offerings, and that would include managed accounts.”Read more >
Issues concerning government regulation in the realm of health care benefits have ebbed in importance for employers during the last three years, according to Littler Mendelson’s 4th annual Executive Employer Survey. Three years ago, 64% of survey respondents said they were significantly concerned about regulatory issues surrounding health care affecting their business, compared with only 33% of respondents in 2015. However, in response to the challenges to the Patient Protection and Affordable Care Act (ACA) and uncertainty surrounding its implementation, more than half (55%) of employers engaged employee benefits attorneys or consultants to help navigate upcoming regulations and track areas where there are likely to be changes.Read more >
Automatic enrollment succeeds in boosting participation by older workers age 55 to 69 in defined contribution (DC) plans, the Center for Retirement Research at Boston College found. But because defaults are so low, their contributions are lower than those who voluntarily opt in.Read more >
Products, Deals & People
Pentegra Unveils Retirement Savings Guidance Tool
Pentegra Retirement Services has introduced the Pentegra Participant SmartPath, an online tool that generates retirement savings accumulation and investing strategies to help 401(k) plan participants achieve successful retirement outcomes. SmartPath details effective tactics—including the benefits of compounding, utilizing effective asset allocation, periodic rebalancing and understanding distribution and decumulation plans.Read more >