Happy Friday, PLANSPONSOR readers! This week we focus on plan design and administration. Mercer has offered a list of what it says are key priorities for defined benefit (DB) plans in 2018. An analysis from Empower offers ideas for what plan sponsors can do to increase savings, while a survey of employees offers insights on tools and plan design defined contribution (DC) plan sponsors can offer to create more retirement confidence. Sibson Consulting suggests ways to measure participants’ retirement readiness, while industry sources weigh in on the education plan sponsors need to give participants to help them with a retirement draw down strategy. Enjoy this edition of PLANSPONSOR Weekend!
An analysis from Empower finds seeing monthly income in retirement, knowing retirement health care costs and comparing themselves to how peers are doing are great motivators for retirement plan participants to save more.
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“Eighty-six percent of employees say that if their employer improved benefits or added access to an investment plan, it would have a positive impact on them at work, resulting in higher job satisfaction and greater commitment to the organization,” Mercer says.
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The plaintiffs say the plan’s terms reduce benefits using “Early Retirement Factors” and “Joint and Survivor Annuity Factors” which result in plan participants receiving less than the actuarial equivalent of their vested accrued benefit, as required by ERISA.
Bob Collie, head of research at the Thinking Ahead Institute, tells PLANSPONSOR version 3.0 will be customized by “hyper-customization and integrated whole-of-life wealth management” that takes into account all of a person’s savings.