Advertisement
2023 QOTW : Plan Design Questions
2023 Question of the Week – Plan Design Questions
Summary brought to you by PNC Institutional Asset Management®
Retirement plan designs are ever evolving as plan sponsors determine what new features to adopt to improve their plans and meet the needs of their participants. The plan design related questions asked this year ranged from automatic features including escalation and annual reenrollment to newer investment trends such as crypto currency, ESG funds, and managed accounts. If you have a plan design change you are considering for 2024 and want to know what your peers are doing, send it to us [email protected].
Brokerage Window Availability, March 20, 2023
While the uptake of ESG funds and other alternatives remains low, we have heard anecdotally from plan sponsors that they offer a brokerage window for participants who want access to those fund types without having to add a specific ESG fund to the lineup. Read more>
Automatic Escalation in Plans, April 3, 2023
Automatic features are known to help boost plan participation in 401(k) plans and while automatic enrollment is now used in a plurality of plans (and the majority of large plans), auto-escalation has been slower to take hold. Read more>
(K)rypto?, April 17, 2023:
Last year the Labor Department issued a “Compliance Assistance Release” regarding the inclusion of cryptocurrency in 401(k) plans – we asked members at that time in a QOTW if they would consider Cryptocurrency as an investment option in their plans and though a handful were considering it, the overwhelming majority were not. Read more>
Monthly Installment Payments for Retirees, July 17, 2023
We recently received a question from a reporter about retirees being able to set up monthly payments from their accounts. Read more>
Automatic (Re)Enrollment, August 7, 2023
Legislation was recently reintroduced in the Senate that would provide a safe harbor for reenrolling nonparticipants at least once every three years (but not less than once a year). Read more>
Diversification Guardrails?, August 14, 2023
A recent op-ed in the Wall Street Journal made the case that participants need guardrails on their investment choices to ensure they are properly diversified, otherwise participants are prone to make “bad” investment choices. Read more>
Graded or Fixed? Why is the question., August 21, 2023
There are an infinite number of ways that a company can structure the employer contribution to the retirement plan, whether it be a match on employee contributions, a non-matching/profit sharing contribution to all, or both. Read more>
Will Cuts to SS Change Plan Designs?, September 11, 2023
There has been some talk in the media of Social Security benefits being cut in 2033 is the system is not shored up. Reports say the benefits would face a 23 percent reduction in benefits across the board – more than $17,000 for a newly retired couple and $13,000 for a single new retiree annually. Read more>
ESG, Managed Accounts, Lifetime Income ... Oh My, October 2, 2023
Though we continue to hear about ESG funds, lifetime income products, and managed accounts in the industry, take-up rates by plan sponsors remain low. Read more>
Sponsored by PNC Institutional Asset Management®
Answer a quick survey about your top 2024 priorities and sign up for a special educational dinner event to be held at the PSCA National Conference.
