Tag: DC plans
The new law extends the time a participant has to repay loans from 60 days after an offset to the date their tax return is due.
An institutional investment approach uses outcome-oriented investments, broad asset class diversification, best-of-breed investment management, a thoughtful mix of active and passive strategies and are vehicle agnostic, a report notes.
Current regulations requiring paper delivery of participant DC plan information can cost investors between $350 to $500 million per year, which can reduce the average account balance by 2.4% over a 40-year work life, the study found.
DC plan consultants surveyed by PIMCO offer suggestions for helping retirees with income, core investment menu design and other DC plan features.
For example, the Council proposes to develop an alternative means of compliance by which the introductory portion of the SPD–referred to as the “Quick Reference Guide”–would be delivered annually to participants automatically, and the entire SPD or any full part of the SPD would be made available upon request.
“Consequently, any policy that alters this system could have consequences–either positive or negative–for Americans’ ability to fund a comfortable retirement,” says Craig Copeland, with EBRI.
The Department of Labor (DOL) has paved the ways for inclusion of environmental, social and governance (ESG)-screened investments to be included in defined contribution (DC) plan menus.
Many may need to set up an emergency fund or pay off debt first.
The number of 401(k) savers with at least $1 million in their 401(k) increased to 150,000 at the end of 2017, up from 93,000 a year ago.
Willis Towers Watson’s Thinking Ahead Institute’s 2018 Global Pension Assets Study also found the U.S. retirement market has a greater propensity towards home bias in investing than other countries.
They like the tax advantages, investment opportunities and investor control that 401(k)s and other DC plans offer them, ICI finds.
A survey finds a drop in revenue sharing used to pay plan fees, and that half of DC plan sponsors plan to renegotiate fees with providers in 2018.
Toni Brown, senior vice president, Retirement Strategy, Capital Group, says a plan sponsor with a clearly defined objective for its defined contribution (DC) plan will be better positioned to make all subsequent decisions.
Aaron Friedman, national practice leader, tax-exempt, at Principal in West Palm Beach, Florida, says “small and mid-sized plans are very much in need of advisers because they don’t have dedicated human resources personnel or expertise on plan administration."