By proactively addressing these critical 401k plan sponsor questions, sponsors can enhance their plans, protect participants, and shield themselves from unnecessary fiduciary exposure.
Tag "plan sponsor"
For ERISA fiduciaries, the challenge is clear: move beyond the default, and design a 401k plan that truly serves the diverse needs of its participants. In doing so, you not only safeguard retirement incomes but also reinforce the trust placed in you by those relying on your expertise.
As recessions become an inevitable part of the economic cycle, the responsibility of ERISA fiduciaries and 401k plan sponsors is clear. For plan sponsors, the answer lies in a proactive, hands-on approach. It’s about continuously reviewing plan design, investing in technology, and fostering a culture of financial literacy among participants.
If you look at headlines in the retirement industry trade press, rarely does a week go by when you don’t see an article lamenting the low retirement savings numbers. How do we change this?
Think of the third party as the food truck in the parking lot. Employees will see it and decide for themselves whether to engage with it.
The tangled web of ERISA regulations grows worse each year. Is this too much for companies responsible for maintaining 401k plans?
The central role of the recordkeeper can create reverberations with other providers should the plan sponsor attempt to change recordkeepers. Any hiccup in the employees’ ability to manage their retirement assets can cause problems for plan sponsors.
“Industry participants also argue that the rule transforms one-off transactions into fiduciary relationships in violation of the common law, but the common law of the states is divided on this, and there is a need for a federal standard regulating investment advice fiduciaries.”
Plan sponsors ought naturally to know how the plan addresses the needs of their business, but do they really know how to tweak the plan to improve outcomes?
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Summary of 2024: Navigating the Evolved Fiduciary Landscape for Retirement Plan Fiduciaries
2024 was a year of adaptation for retirement plan fiduciaries who navigated through regulatory changes, legal landscapes, and participant needs with a renewed focus on governance, liability management, and the holistic management of retirement plans.