Week ending August 30th, 2019

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!

Editor's choice

Administration

Plan Sponsors Should Watch for Unintended Consequences of Defaults

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 >

Administration

Misunderstanding Retirement Plans Affects Participant Savings Behavior

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 >

Administration

A New Way of Thinking About Retirement ‘Plans’

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 >

Administration

Pragmatic Strategies to Reduce PBGC Premiums This Year

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 >

Administration

MainePERS Has Some Suggestions for Struggling Public Pensions

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 >

MOST POPULAR STORIES

Democrats Take Control of the Senate: What Does That Mean for Your Retirement Plan?

Syed Nishat, with Wall Street Alliance Group, discusses potential effects on retirement plans if President Joe Biden is able to move forward his legislative agenda.

2020 Recordkeeping Survey

Takeda Pharmaceuticals Faces ERISA Lawsuit Over TDF Suite in 401(k) Plan

The lawsuit says the target-date funds were selected for the plan despite having no performance history and, when they continued to underperform, they were not replaced with better options.

The Value of Having a Retirement Plan Committee Charter

While not required by ERISA, attorneys say a committee charter is a best practice that can help a plan run more smoothly—and help fiduciaries avoid litigation and penalties.

Pandemic Puts More Households at Risk in Retirement

The Center for Retirement Research says half of American households are at risk of not being able to live at pre-retirement standards of living in retirement.

Editorial: Alison Cooke Mintzer alison.mintzer@strategic-i.com

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