"[F]iduciaries should be wary of relying on the DOL's position to apply ESG factors when they are not directly tied to the financial risk and return of an investment.... Fiduciaries should ... consider whether a fund with a PE allocation is appropriate considering the plan's features and participant profile and whether sufficient information will be available for participants to make informed investment decisions.... Fiduciaries considering offering cryptocurrency investments or funds with cryptocurrency exposure should be able to document that they have followed a robust process that takes into account the DOL's concerns."  MORE >>

"The proposal would increase DOL's scrutiny of PTE applications, require expanded disclosures, and impose stringent conditions for standards of conduct and avoidance of conflicts. Applying for an exemption would likely involve increased time and costs."  MORE >>

"About 79% of all participants in the latest survey said they disagreed with the idea of an annuitization mandate ... up from 71% in 2009 ... Participants 50 or older with household income of $50,000 per year or higher were the most negative about the annuitization mandate statement."  MORE >>

"Choosing the right retirement plan offering, whether it's a traditional 401(k) or a safe harbor plan, comes down to several factors, including employee count and demographic, participation levels, company cash flow, previous compliance issues (if any), and desired plan design."  MORE >>

"There is growing support and interest from DC plan fiduciaries for daily-valued private real estate offerings. There are approximately 16 daily-valued solutions totaling roughly $50 billion available, and additional product launches are expected. Some retirement income solutions are evolving to include private real estate. There is also emerging interest in private real estate debt."  MORE >>

"Here are four ways a 401(k) provider can profit unduly at the expense of plan participants -- not to mention, the employers sworn to protect their interests -- in plain sight.... [1] Limiting funds to a 'preferred' list.... [2] Serving as the named fiduciary.... [3] Limiting plan designs to cookie-cutter options.... [4] Discounting other corporate services."  MORE >>

"Younger employees and employees in larger firms have been less likely to opt out of the OregonSaves program, but participation rates fall over time. The most common reason given for opting out is 'I can't afford to save at this time,' but the second most common is 'I have my own retirement plan.' As of April 2020, 67,731 accounts had positive account balances, holding $51.1 million in total assets. The average balance was $754, but with considerable dispersion[.]"  MORE >>

"Design DC plans that are consistent with their long-term purpose and role in the retirement system.... Design financial incentives to maximize the impact on enrollment and contributions.... Promote low-cost and cost-efficient retirement arrangements in both the accumulation and pay-out phases.... Ensure that all individuals have access to appropriate and sustainable investment strategies and a well-designed default, where applicable.... Ensure protection against longevity risk in retirement.... Promote awareness and support financial education about retirement and pensions."  MORE >>

"[O]ne of the real challenges [with] conventional methods for displaying simulations is that results are often conveyed in a manner that doesn't allow for easy comparison across various spending or risk levels. An alternative method to ameliorate this problem is to leverage technology to graphically display curves that relate a client's spending levels with corresponding risk outcomes. These 'Spending Risk Curves' can be far more insightful than a single probability-of-success result[.]"  MORE >>

"Nearly half of the business owners [surveyed] either plan to work in their businesses beyond 10 years from now or have no idea when they plan to retire. Two-thirds are waiting for the right buyer to come along. Most say it will be an almost even split between funding retirement with both the business and assets outside the business."  MORE >>

"Analyzing and mining data can help plans find interesting or questionable patterns that may be a sign of fraud or waste.... External auditors should take certain steps to detect material errors and irregularities in the plan financial statements.... Multiemployer plan policies detail plan compliance with government regulations, mandate consistency in plan operations, help plans avoid legal liability and give assurance to others that that the plan is well run."  MORE >>

"[The DOL] interprets the phrase to apply 'select group' and 'management or highly compensated employees' as distinct requirements, both of which must be met to establish the top hat status of a deferred compensation plan.... For the most part, federal courts have found that a 'select group' exists with coverage percentages ranging from about 5% to about 15%, and at least one federal court has declared that a plan covering 18.7% of the employer's workforce could not be considered a top hat plan."  MORE >>