How DC Plans Should Prepare for Missed Loan Payments
Takeaway: The significant economic tremors, including income insecurity and job reductions, stemming from the coronavirus pandemic may lead to increased loan defaults and impact long-term retirement readiness. Background: Defined contribution (DC) plans have the option of offering loans to participants. Generally, the participant must repay a plan loan within five years (except for purchases of a primary […]
How Sponsors Can Harness DC Plan Data for Better Outcomes
View Their Paper Conceived as supplements to pension plans, defined contribution (DC) plans have taken center stage in the retirement industry. That has led stakeholders (i.e., plan sponsors, consultants, investment managers, and policymakers) to continue to push for an evolution of the core investment menu. Much of the discussion about DC plan design has focused […]
Supreme Court Defines ‘Actual Knowledge’ in DC Plan Suit
The Supreme Court in late February ruled that the statute of limitations for lawsuits alleging breach of fiduciary duty under ERISA will only be reduced to three years “when a plaintiff actually is aware” of the facts of a breach, “not when he should be.” Background: ERISA lawsuits alleging breach of fiduciary duty are typically restricted […]
Managing Turmoil: Tips for DC Plan Sponsors
Market volatility and fears of the coronavirus (COVID-19) have introduced novel concerns for many DC plans that have the potential to strain resources. Sponsors should consider what the impacts may be to the plan and how to mitigate them. So far, the coronavirus pandemic has led to travel restrictions, self-isolation, and quarantines, and has triggered […]
The Changing Face of Retirement
The face of retirement is shifting. Gone are the halcyon days of shuffleboard, “early bird” specials, and lounging by the pool. Many retirees now mix work with leisure
The Supreme Court Decides Not to Decide
The U.S. Supreme Court has an unusual number of Employee Retirement Income Security Act (ERISA) petitions before it in the 2019-20 term.
DC Trends Survey Highlights Plans’ Focus for 2020
View PDF Defined contribution (DC) plan sponsors continue to make fees a main priority, according to Callan’s 2020 Defined Contribution Trends Survey, but they are also focused on communicating with participants and plan to highlight the topic of financial wellness in 2020. In addition, the already high share of sponsors acting to prevent plan leakage sharply rose, […]
What You Need to Know About the SECURE Act
The most substantial legislation affecting retirement since the Pension Protection Act of 2006 became law recently. Known as the SECURE Act (for Setting Every Community Up for Retirement Enhancement).
Key DC Plan Limits for 2020
The IRS has announced the updated retirement plan limits for 2020. Here are the notable limits for defined contribution (DC) plans: The annual contribution limit will increase from $19,000 to $19,500. The age 50 annual catch-up contribution limit will increase from $6,000 to $6,500, the first increase since 2015. The annual compensation limit will increase […]
Participant Notices: Boring but Important
The U.S. Department of Labor (DOL) announced a proposed rule in late October that would allow certain retirement plan disclosures to be posted online. This would result in reduced printing and mailing costs, make disclosures more readily accessible, and diminish the environmental impact of distributing physical notices. (It is noteworthy that a proposed rule on reducing paper […]