It appears all but certain the floodgates will soon open wide, unleashing a torrent of trade association sponsored 401k MEPs. If you’re looking for the trigger that will open those floodgates, here’s what you should be paying attention to.
Tag "401k"
Not being able to easily monitor how former employees apply these tools, however, can increase the fiduciary liability of plan sponsors.
“401k Multiple Employer Plans (MEPs) are a solution for the small to mid-sized employer market that will lead to the expansion of retirement plan coverage for America’s workers.”
You can’t do anything about it if you don’t know what the “it” is you need to do something about. It is therefore important for plan sponsors to devote resources that increase employee awareness.
MEPs have the potential to do what state-sponsored plans may not be able to offer – protection under ERISA. That’s in the employees’ best interests. If many embrace this concept, September 30, 2019 may indeed signal the dawn of a new day in retirement saving. Still, due diligence remains an imperative.
Just as summer changes into fall, Reg BI will change the way all participants – investors, service providers, and 401k plan sponsors – interact with each other. These are the changes we might expect.
The bottom-line is employees may be setting themselves up not only for failure, but for a costly failure. This is why it’s vitally important for employees to understand more than just the simple objective and class of the mutual funds they own.
If you think this evolution is amazing, just wait until you see what changes come about once the 401kMEP starts ramping up.
Here’s quick read with a surprise reveal. Can you find it?
There’s always something new under the sun, and that means there’s always educational topics 401k plan sponsors should be asking about but aren’t. Hopefully, this list will inspire more curiosity and lead to better informed employees.
