Legislation, regulations and industry trends help retirement plan sponsors in designing their plans. However, even the most well-intentioned plan designs may have unintended consequences. And, if participants don’t understand how retirement plans work, it could adversely affect their savings behaviors. In this edition of PLANSPONSOR Weekend, we share 10 key design principles for defined contribution (DC) plan sponsors. For defined benefit (DB) plan sponsors, there are strategies to reduce Pension Benefit Guaranty Corporation (PBGC) premiums. And for public DB plan sponsors, a case study from Maine reveals how to turn around a troubled public pension system. Have a wonderful holiday weekend!
A research paper warns that changing to a default fund that is preferred by more employees may lead people to be less well-prepared for retirement.Read more >
Research reports find a large proportion of employees don’t understand their retirement benefits—with some not even realizing they are participating—and better communication is needed to help participants take the best savings actions.Read more >
Mike Sasso, with Portfolio Evaluations, and a professor at Boston University, explained a new way of thinking to get plan sponsors to focus on retirement income for participants.Read more >
Pension plan sponsors have taken various actions to reduce their PBGC premiums in the last year, resulting in a decline in premiums paid in 2018 of $1.2 billion.Read more >
The plan’s history offers a case study for how to turn around a troubled public pension system after years of neglect; the system at one point was no better than 20% funded.Read more >
Among other things, the RISE Act would encourage retirement savings by allowing plan sponsors to offer small financial incentives to motivate employee participation.
Eighty-one percent of respondents to a survey indicate they are at least somewhat likely to prefer a retirement plan that substitutes guaranteed income for safe investments such as bonds.
