Financial Wellness: Is It the Right Prescription for Your DC Plan?
Jana Steele provides a summary of her recent white paper on financial wellness options for DC plans.
DOL Proposes Tightened Proxy Voting Guidelines
The department’s new proposal dovetails with SEC guidance finalized in 2020 and would create a refined set of circumstances in which plan fiduciaries may engage in proxy voting.
Fine-Tuning Implementation of the CARES Act
The IRS has issued two notices and a FAQ to clarify how defined contribution (DC) plan sponsors should implement the provisions of the act, touching on required notices, tax reporting, and recordkeeping
DOL Calls for Stricter Rules Around ESG Investing in Retirement Plans
The Department of Labor (DOL) in late June proposed guidance for considering environmental, social, and governance (ESG) factors in the investment duties of fiduciaries for both defined benefit and defined contribution plans subject to ERISA. In general, the DOL rule seems intended to create a larger hurdle to incorporating ESG factors into ERISA plan investments. […]
Our DC Index Had a Noteworthy First Quarter
The Callan DC Index™ tracks roughly 100 defined contribution (DC) plans with about $250 billion in total assets. The Index serves as a proxy for the DC universe and provides plan-related statistics such as asset class prevalence, average allocation figures, and the average number of plan investment options. With our comprehensive perspective on the DC […]
DOL Issues Common-Sense Information Letter About Private Equity in DC Plans
In an information letter released in June, the Department of Labor said that defined contribution (DC) plan sponsors considering the inclusion of private equity in their plans (in a multi-asset framework) must adhere to the same standards and weigh the same considerations as they would for other asset classes. Namely, plan fiduciaries “have duties to […]
Callan Survey: DC Plan Response to CARES Act Varied by Industry and Recordkeeper
Callan conducted a survey in mid-April to assess what defined contribution (DC) plan sponsors have done in response to the CARES Act and the recent economic turmoil spurred by the pandemic. The survey includes responses from 63 non-government plan sponsors, and in general we found that their actions were primarily influenced by the industry they […]
Freezing or Suspending Matching Contributions: Requirements and Timing
DC plan sponsors hit hard by the recent economic environment are evaluating if reducing or suspending matching contributions is prudent. The presence of an employer match both supplements and encourages employee retirement savings. Background Plan sponsors have been more likely to decrease or suspend matching contributions during periods of economic hardship. This was seen in […]
Guidance on Substantial Workforce Cuts and DC Plan Terminations
Employers that reduce their workforce or discontinue defined contribution (DC) plan eligibility for certain employee groups may experience an inadvertent “partial plan termination.” If not properly managed, this event could result in a disqualification of the entire plan. Background A partial plan termination is typically triggered by a distinct event or series of events (e.g., […]
Balancing ERISA Rules With Current Economic Concerns
Plan sponsors have traditionally sought to limit “leakage” from defined contribution (DC) plans. However, in these chaotic times, sponsors should consider how they can support participants in financial distress. Background The coronavirus pandemic has led to significant economic tremors, including income insecurity and job reductions. As a result, plan sponsors and participants are looking to […]