Hello, PLANSPONSOR readers! Despite news reports of struggling retirees, this week, the Investment Company Institute found they have adequate income replacement. But, research from Morningstar shows those of us not yet retired need nudges to improve savings. Retirement plan consultants make recommendations for defined contribution (DC) plan investment lineups, while research from Pew reveals defined benefit (DB) plans’ move to alternative investments actually results in more volatility. Also, time is running out for those plan sponsors with individually designed plans who want to adopt a pre-approved plan now that the Internal Revenue Service (IRS) determination letter program has changed. Enjoy your weekend!
Research findings show Social Security benefits and retirement income from employer-sponsored retirement plans, annuities, and IRAs together provide substantial income for U.S. retirees.Read more >
New research by Morningstar suggests plan sponsors may benefit from increasing default savings rates, relying on opt-out auto escalation features, and stretching the employer match.Read more >
Data from Pew does not reveal a best or one-size-fits-all approach to successful investing, but there is a uniform need for full disclosure on investment performance and fees.Read more >
Plan sponsors with individually designed plan documents may want to adopt a pre-approved plan since the end of the IRS determination letter program.Read more >
Share the news with a friend! Pass PLANSPONSOR Weekend along—and tell your friends/associates they can sign up for their own copy.Read more >
Plan sponsors will be required to provide much more data, as well as certifications about plan administration and governance, and limited-scope audits will no longer be so limited.
The agency says the proposal seeks to emphasize that climate change and other ESG factors can be financially material and that considering these elements can lead to better long-term risk-adjusted returns.
