Week ending December 1st, 2017 Hello, PLANSPONSOR readers! This week we focus on plan design and administration. A survey found some health care organizations are moving from 403(b) plans to 401(k)s and most, no matter which type of plan they offer, are revamping them to attract more talent. AB suggests six ways defined contribution (DC) plan sponsors can improve their plans. Willis Towers Watson found that while most employees want employers to offer tools to help them improve their financial situation, many balk at receiving targeted, personalized messages. However, Professor Shlomo Benartzi, business school professor at the University of California, Los Angeles (UCLA), Anderson School of Management, shared some tricks for using technology to nudge employees to save more. He said digital displays are attractive to participants because they are anonymous and there is no judgment. Cambridge Associates suggested defined benefit (DB) plan fiduciaries should coordinate across four “levers” that can help improve funded status and mitigate negative impacts of under-funding on corporate financials. Enjoy this edition of PLANSPONSOR Weekend!
Editor's choice Data and Research Health Care Organizations Move From 403(b)s to 401(k)s To retain and attract staff, many health care organizations have been shoring up their retirement plans and, in many cases, updating them to look more like those found in the private sector. Transamerica also found that many health care organizations are moving away from 403(b) plans to 401(k) plans.Read more > Data and Research AB Outlines Six Ways to Improve DC Plans Markedly There are steps that defined contribution (DC) plan sponsors can be taking to improve their plans now, AB says in a new blog, “Six Steps to Take DC Plans to the Next Level.”Read more > Data and Research Half of Employees Don’t Want Personalized Messages About Saving for Retirement Willis Towers Watson found that 53% of employees would like their employers to offer tools to help them improve their financial situation. However, 57% do not want their employer to send personalized messages to people facing important financial decisions.Read more > Administration Digital Nudges the Next Step in Improving Participant Retirement Savings Professor Shlomo Benartzi, business school professor at the University of California, Los Angeles (UCLA), Anderson School of Management, says technology can be used immediately to improve retirement plan participation and savings rates.Read more > Administration DB Plan Sponsors Should Balance Four Levers to Improve Funding No lever alone is enough to close the pension funding gap, according to a report from Cambridge Associates.Read more >
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