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Defined Contribution Plans
Thanksgiving has been called a “uniquely American” holiday, and while that may be something of an overstatement, it is unquestionably a special holiday, and one on which it seems appropriate to reflect on all for which we should be thankful.
So, as I look back at this past year:
I’m thankful that...
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While past studies of DC plan designs suggest that smaller core menus improve participation rates and outcomes by reducing choice overload, a new study questions that wisdom.
In fact, Morningstar Investment Management’s new white paper – “Bigger Is Better: Defined-Contribution Menu Choices with...
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Even though 401(k) participants are increasingly leveraging target date funds to keep their asset allocations on track, a new analysis by Fidelity suggests that many had stock allocations higher than those recommended for their age group.
As part of its 3Q 2019 analysis of retirement trends,...
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Two retirement and economic policy analysts from opposite ends of the policy spectrum have come together to agree that the 401(k) system has not lived up to its capability.
Andrew Biggs, a resident scholar at the American Enterprise Institute and Alicia Munnell, Director of the Center for...
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To overcome behavioral biases and concerns about turning current savings into retirement income, a new paper contends that lifetime income should be part of DC plan default options and target date funds may be part of the solution.
“It may seem like a bold step to embed an income solution into the...
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Interest in retirement income is rising among plan participants and plan sponsors, according to a variety of experts who participated in panel discussions at the recent SPARK Forum held in Palm Beach, FL.
Participants’ Perspectives
Participants are saying that not running out of money is...
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Stephanie Avakian, Co-Director of the Securities and Exchange Commission (SEC) Division of Enforcement, outlined the agency’s examination of the administration of teacher retirement plans at a recent conference.
In keynote remarks she presented Nov. 5 at the 2019 SEC Regulation Outside the United...
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The asset allocation found in IRAs in many cases is drastically inconsistent with the asset allocation found in the 401(k) plans before rolling over to IRAs, according to a new issue brief from EBRI.
As such, the organization warns that despite 401(k) plan sponsors devoting considerable...
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Even though 401(k) participants are increasingly leveraging target date funds to keep their asset allocations on track, a new analysis by Fidelity suggests that many had stock allocations higher than those recommended for their age group.
As part of its 3Q 2019 analysis of retirement trends,...
READ MORE
To overcome behavioral biases and concerns about turning current savings into retirement income, a new paper contends that lifetime income should be part of DC plan default options and target date funds may be part of the solution.
“It may seem like a bold step to embed an income solution into the...
READ MORE
Most current retirees say they rely primarily on Social Security or a pension to fund their retirement, but a new study finds that younger generations have a different mindset altogether.
More than 8 in 10 (86%) retirees fund their retirement primarily with Social Security or a pension. By...
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The retirement plan industry is in transition on multiple fronts. At this year’s SPARK National Conference on Nov. 4, industry experts recently offered their take on meeting the challenges posed by today’s changes.
In the opening session of the conference in Palm Beach, FL, Peter Preovolos,...
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October is a month long associated with significant market volatility – so did this one bring tricks – or treats – for the average 401(k) balance?
Well, despite losses on Halloween, the major stock market averages posted solid gains for October. The Dow and S&P 500 gained 0.3% and 0.5%,...
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Amid the push to enact the SECURE Act, new research shows that small business owners strongly believe the legislation will help them offer 401(k) plans that compete with large firms’ plans.
According to a forthcoming study, the Nationwide Retirement Institute found that nearly 60% of small...
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The IRS has announced cost-of-living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2020. The 2020 limits are contained in Notice 2019-59, released Nov. 6.
The limits for 2020 are as follows:
The limitation under Code Section 402(g)(1)...
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Just in time for Halloween, two reports published earlier this week included some scary information about American workers’ retirement readiness.
Social Security Concerns
Less than half of workers — 44% — believe that income from Social Security, pensions and annuities will cover their basic...
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What’s a plan fiduciary to do when a participant’s designated beneficiary is responsible for the participant’s death?
That was the case in Estate of Brownell v. Lyczak (D.N.J., No. 18-16803, 10/25/19). As it turns out, on Dec. 30, 2017, Colleen Brownell was killed; on Feb. 1, 2019 the defendant in...
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A group of seven Republican senators is urging the Senate Majority Leader to act on one of the most consequential pieces of retirement security legislation in more than a decade.
“We encourage the Senate to take action on the SECURE Act as soon as possible. Doing so would demonstrate to our...
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Any day now the IRS is expected to release the contribution and benefits limits applicable to retirement plans.
The folks at October Three project that, based on the 1.76% increase in CPI-U between the 3rd quarter of 2018 and the 3rd quarter of 2019, we can expect increases in most limits...
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If your workforce includes recent college graduates – or even not-so-recent college graduates – it’s likely that some of them have debt associated with their college years – and just as likely that it’s hampering their retirement savings.
Any number of studies have chronicled the impact of this...
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