Posted by: 0 in vantageblog, retirement planning, retirement plan, recordkeeper, Prudent expert, plan sponsor, plan expenses, investment education, Fee disclosure, 401(k) plan on
Mar 1, 2010
So my last blog on Fee Disclosure left us with some open issues. Namely we still need to help participants understand two things:
- The impact of the identified costs on their future retirement savings, and
- How their choices within the Plan can change those costs and outcomes.
So how could we do that on participant statements along with the simple disclosure I outlined previously?
Remember, realistically, we have to boil it down to a standardized formula/format that will work for ALL participants of ALL plans. In other words, we’ll never be able to (on an individual basis) take into account an individual’s preferences, risk tolerance, outside savings, etc., as those things are unique to the individual and couldn’t easily be “modeled” on a participant statement disclosure. (Note: there are plenty of great products available out there that an individual can use to accomplish that level of accuracy in modeling. Even those that can be tied in with your plan’s recordkeeper – Financial Engines comes to mind.)
Posted by: 0 in vantageblog, retirement planning, retirement plan, Prudent expert, plan sponsor, plan expenses, investment education, fiduciary responsibility, Fee disclosure, 401(k) plan on
Feb 5, 2010
As I mentioned in my post last week, we (the industry) need to come up with a disclosure that truly (and simply) explains who is getting paid what, for what, how, and by whom, along with a participant-specific dollar figure of costs incurred – then explains how the participant can affect their own plan costs based on their choices. This is no small task.
There is no doubt that fees within 401(k) Plans are confusing at best ... deceptive at worst.
Posted by: 0 in vantageblog, retirement plan, qualified plan, Prudent expert, plan sponsor, plan compliance, participation rate, investment education, fiduciary responsibility, Fee disclosure, enrollment meetings, 401(k) plan on
Jan 27, 2010
“Obama-Save” (as opposed to Obama-Care)
On Monday, January 25, 2010, the White House released a fact sheet on their Middle-Class Task Force initiatives. The fact sheet has few details, but there is a great summary of the retirement-related initiatives here on PlanSponsor.com. I have a number of thoughts and concerns about these initiatives that I’ll outline below.
Let me just say up front: commission-based investment advisors and insurance product sellers (and maybe Mr. Biden’s Middle Class Taskforce) will NOT like my viewpoint … but that’s too bad! My company is about helping Plan Sponsors and their Participants do the right thing, the right way … period. Figure out how to line up with that philosophy and we won’t have a problem.
Posted by: 0 in vantageblog, retirement plan, retirement audits, qualified plan, Prudent expert, plan sponsor, plan compliance, partial plan termination, named fiduciary, IRS audit, Form 5500, fiduciary responsibility, fiduciary liability, ERISA audit, eligible participants, DOL audit, audited financial statements, 401(k) plan on
Nov 3, 2009
We’ve passed the extended filing deadline for 2008 Form 5500’s by a couple of weeks now. So you can check that task off of your list until next year. But I want to ask you a serious question …
Did you read it?!?
I mean did you really read it before filed it? Or were you cutting the filing deadline so close that when you got the final package in your hand you just put it in the mail to get it out the door? (Been there, done that ...)
When now President Obama was campaigning last fall, the picture for the 401(k) was even worse, with hints of “free” withdrawals, nationalized retirement programs, and other ideas to kill the 401(k). Now he just wants to “tweak” retirement savings with the intent of encouraging worker savings over spending, and … wait for it … thereby reducing the trade deficit … really?!?
Interestingly, the proposed changes are largely “administrative” (read “a mess for employer-sponsors and the industry") and don’t require Congressional approval. Does he just want to move quickly, or is he concerned that Congressional hearings on the matter would shed too much light on the unintended consequences of his changes? Just wondering …
Let’s take a look at what President Obama proposed Labor Day weekend and talk about what the impact of these changes mean to employee retirement savings, employer plan sponsors, and the retirement industry.
Posted by: 0 in retirement plan, retirement audits, qualified plan, Prudent expert, Plan Document, named fiduciary, fiduciary responsibility, fiduciary liability, ERISA audit, Due Diligence, 401(k) plan on
Oct 7, 2009
Under ERISA, a plan fiduciary is anyone who:
Exercises discretionary authority in the management of the plan
Gets paid for regularly providing investment advice
Exercises any discretionary authority in the administration of the plan
Fiduciaries in an organization typically include:
Posted by: 0 in vantageblog, retirement plan, retirement audits, qualified plan, Prudent expert, plan sponsor, plan expenses, Plan Document, plan compliance, fiduciary responsibility, fiduciary liability, Fee disclosure, Due Diligence, 401(k) plan on
Sep 30, 2009
Benchmark your plan! Benchmark your plan!
Make sure you’re not paying too much!
Make sure it’s competitive!
Make sure it’s compliant!
The pressure is on you as the Plan Sponsor to make sure the retirement plan you’re providing for your employees is the best it can be. You know you need to benchmark your plan, but you’re not sure HOW.
Here are a few options to consider:
