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 […]
DC Plan Hacks: Tips for an Efficient Design
View PDF To best serve employees, defined contribution (DC) plans need to evolve to meet the changing needs of the workforce and respond to the shifting regulatory landscape. For instance, the Baby Boom generation may require a greater focus on decumulation strategies, while the Generation X cohort may need more savings options, and those in […]
The Impact of Vendor Consolidation: Wells Fargo and Principal
After much industry speculation, Principal Financial Group is acquiring Wells Fargo’s Institutional Retirement and Trust (IRT) business for $1.2 billion.
Steps to Make DC Plans Good (and Avoid Bad or Ugly Outcomes)
View My Paper Remember the 1966 spaghetti western “The Good, the Bad, and the Ugly”? The promise of a vast fortune creates a partnership between the Good (Clint Eastwood), the Bad (Lee Van Cleef), and the Ugly (Eli Wallach) before pitting them against one another in the search for the loot, with plenty of gorgeous cinematography […]
Compensation Applied Incorrectly Costs Big Bucks
Translating the legal definition of “compensation,” as captured in the defined contribution (DC) plan document, to payroll programming is complex. When it is applied incorrectly, it leads to high costs to calculate and fund missed compensation deferrals or contributions, along with the costs to correct the error via the Internal Revenue Service Employee Plans Compliance […]
DC Plan Sponsors and Participants Get Disaster Relief
In response to Hurricanes Florence and Michael, and the 2018 California wildfires, the Internal Revenue Service (IRS) and Department of Labor (DOL) have extended relief to those affected by the disasters from certain defined contribution (DC) plan requirements. Individual relief for those impacted by the hurricanes: Hurricane victims will have easier access to DC plan […]
Baby Steps on Auto Portability
The Department of Labor (DOL) has issued a proposed rule addressing “auto portability,” a mechanism intended to automatically reconnect defined contribution (DC) plan participants with accounts they may have inadvertently left behind or forgotten about after leaving an employer. America’s highly mobile workforce drives millions of job changes each year. Rolling balances between plans is a source […]
Cybersecurity for DC Plans
Callan’s experts describe the best ways for defined contribution (DC) plans to prepare for what will be an almost inevitable cyberattack.
What Has Changed Over the Years with DC Plans
Callan just opened the 2019 Defined Contribution Trends Survey, the 12th we have conducted in its current incarnation, and we thought it would be helpful for plan sponsors to see how the industry has evolved over time. Below are some highlights from a predecessor version of the survey published in 1992 and 1998
IRS Eases Restriction on Student Loan Repayment in 401(k) Plans
The IRS released a private letter ruling (PLR) this week outlining how employers can provide a student loan repayment benefit as part of their 401(k) plan. This is a welcome development, as what is known as the contingent benefit rule has caused some confusion as to whether a student loan repayment program could be linked […]