Michael Barry, president of the Plan Advisory Services Group, discusses his idea for a solution to the “missing participant” plan leakage problem.
Lawmakers sent a letter to the DOL Secretary asking for guidance on auto-portability as soon as possible.
Speakers at the PLANSPONSOR National Conference discussed how plan sponsors can help terminated and retired participants make smart withdrawal decisions.
“We are a private tax-exempt health care organization that sponsors a 403(b) plan. One of our new physicians used to work for the state, and has a 457(b) plan balance. Can this physician roll her 457(b) balance into the 403(b) plan?”
The investment firm says it is important to permit them to take partial withdrawals.
“We are a large controlled group with some entities eligible to sponsor a 403(b) plan, and some not.
The ERISA Advisory Council recognized in a report that there are several potential solutions to promote plan-to-plan transfers and retirement account consolidation.
“I work for a large health care organization that encompasses several subsidiaries that counsel has determined are part of the same controlled group.
Providers, industry groups and regulators agree efforts are needed to reduce defined contribution retirement plan cashouts.
However, the average deferral rate for the plans that T. Rowe Price administers is 7%, well below the recommended 15%.
"The DOL fiduciary rule impacts all qualified assets and will likely have a major impact on the rollover market," says Matthew Drinkwater with LIMRA.
Encouraging terminating participants to leave their assets in the retirement savings system
The regulations remove the allocation rule for disbursements from designated Roth retirement accounts to multiple destinations.
Automatic roll-ins can supplement automatic enrollment, according to Spencer Williams with Retirement Clearinghouse.
Experts say plan sponsors will see an expansion of fiduciary services, and sponsors and participants will be offered more information to help them make informed decisions.
The final rule from the DOL scaled back on some requirements, but left others in place.
“I have read a number of articles lately promoting the benefits of making after-tax contributions to a retirement plan and rolling such contributions over to a Roth IRA at retirement. Does it work?”
More than eight in ten did so with the help of an adviser.
Millennials and those with balances lower than $20,000 are at the greatest risk for cashing out.
WMSI’s suite of services and rollover solutions will be part of DST Retirement Solutions.