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Forecasting Forfeiture Changes
Sponsored by: MFS Investment Management There have been several lawsuits recently alleging breach of fiduciary responsibility by plan sponsors due to the way in which forfeitures are allocated. To date, none of the lawsuits have moved forward or have been found in favor of the plaintiff, but we wondered if this new avenue of legal action was... Read More >>
Retirement Savings System Under Fire at Senate Hearing
A hearing that was billed as “taking a serious look at the retirement crisis in America” with a focus on improving the defined benefit system ended with witnesses agreeing that some reforms are needed, but calling for drastically different measures. The Feb. 28 hearing was held by the Senate Health, Education, Labor and Pensions (HELP) Committee,... Read More >>
Small Plan Balances – Choices and Compliance Risks
Small account balances in 401(k) plans have forever been a challenge for plan sponsors. The challenge primarily arises from the participant’s lack of interest in the small account balance. Amounts above a certain value tend to command the attention of the participant and the participant is likely to respond to distribution notices and... Read More >>
Teresa Ghilarducci Confirms Proposal to Create Federal 401(k) Would Remove Employers from Retirement Saving System
Familiar 401(k) critic Teresa Ghilarducci testified before Congress on Feb. 28, claiming America’s retirement system is “severely broken” and seniors must either “work or rely on the kindness of strangers to dodge the increasing risk of elder poverty." Ghilarducci, a professor at the New School for Social Research, is currently promoting her... Read More >>
Cyberssecurity and Retirement Plans
What is Cybersecurity? From the oxford dictionary it is “the state of being protected against the criminal or unauthorized use of electronic data, or the measures taken to achieve this.” Cyberattacks, and Data breaches have become increasingly common and happen all too often in recent years. Data breaches have affected every industry, including... Read More >>
Retirement Plan Committees: Crucial Failsafe
Sometimes the most mundane details can be overlooked—which, for a plan and plan sponsor, entails risk. In fulfilling the myriad responsibilities attendant to offering and running a plan, a retirement plan committee can be a great help. Navigating increasingly complicated benefits administration—and against a backdrop of continually evolving ERISA... Read More >>
Senate HELP to Hold Hearing on Confronting the ‘Retirement Crisis’
Amid the recent attacks on the 401(k) savings system, the key Senate committee with jurisdiction over ERISA plans to hold a hearing next week to examine what it describes as “confronting the retirement crisis facing working class Americans.” The Senate Health, Education, Labor, and Pensions (HELP) Committee, chaired by Sen. Bernie Sanders (I-Vt... Read More >>
Report Adds Fuel to the Fire on Effect of Student Loan Debt
Student loan debt has long been said to be a drag on retirement saving, and a just-released report adds fuel to the fire. Not only is student loan debt an immediate and long-term financial burden, it also has a “statistically significant” effect on retirement accounts, says a new issue brief by the Employee Benefit Research Institute (EBRI)—and... Read More >>
ARA Urges IRS to Permit Financial Incentives for Every Plan Participant
PSCA is part of the American Retirement Association (ARA). On Feb. 20, the American Retirement Association (ARA) sent a letter to the Internal Revenue Service (IRS) that addressed technical issues affecting certain SECURE 2.0 provisions. It noted a few that are of particular relevance to retirement plan sponsors and advisors. More specifically,... Read More >>
Searching for Standards: What Does ESG Mean Anyway?
The acronym ESG, which stands for “Environmental, Social, and Governance,” was first coined by the United Nations in a landmark 2004 report, “Who Cares Wins.” The report stated, “better consideration of environmental, social and governance factors will ultimately contribute to stronger and more resilient investment markets, as well as contribute... Read More >>