Search the News Archive

Plan Sponsor Council of America Comment Letter to DOL on Lifetime Income Illustration in Pension Benefit Statements (PDF)

"PSCA does not support a mandate.... It will be helpful for the Department to explain how it determined that its authority under Section 505 permits this broad interpretation of Section 105.... The safe harbor in the intended regulation will result in a major reduction in the availability of other retirement income calculators, to the detriment of participants.... The ANPRM should be product neutral... Projections are critical to any lifetime income... [T]he Department should issue guidance relating to the provision of retirement income calculators similar to the guidance issued under Interpretive Bulletin 96-1 that relates to participant investment education."

PSCA Encourages Plan Sponsors to Raise Their Voices About Tax Reform

"PSCA's recent survey of plan sponsors on the impact of tax reform ... found 90% are strongly or somewhat opposed the reduction of tax incentives for retirement savings."

PSCA Comment Letter to ERISA Advisory Council on Locating Missing and Lost Participants

Recommendations include: "The DOL should extend the safe harbor rules under ERISA Regulation Section 2550.404a-2 to missing beneficiaries in addition to participants ... The DOL should extend the safe harbor rules under ERISA Regulation Section 2550.404a-2 to distributions to missing or unresponsive participants, without regard to the size of the benefits, when benefits become payable after attaining the plan's normal retirement date.... As a practical matter, account balances of less than $1,000 continue to cause administrative headaches."

The Impact of Student Loan Debt on Defined Contribution Retirement Plan Participation: The Plan Sponsor Perspective

11 pages. "[T]he degree to which Millennial employees cite student loan debt as creating a 'Moderate' (26.0 percent) or 'High' (8.9 percent) barrier to saving for retirement is significant. These findings are particularly noteworthy within select industries, such as in the service industry where 42.5 percent of respondents rate student loan debt as a 'Moderate ' or 'High' barrier, or in the technology or telecommunications industry where 45.5 percent of respondents rate student loan debt as a 'Moderate' or 'High' barrier."

Plan Sponsor Policies on Cashouts, Missing Participants, and Uncashed Checks

"Forty percent of respondents stated they are very confident in their plan's handling of missing participants and uncashed checks ... 60 percent of respondents are concerned about their ability to track down missing participants.... Currently, a quarter of all respondents allow participants to remain in the plan regardless of the balance -- though small plans are more likely to do so."

Plan Sponsor Fee Litigation Cases on the Rise (PDF)

"[This article provides a] summary of recent fee lawsuits and implications for your plan.... This year has been an active year for excessive fee cases as more than 30 cases have been filed across almost every circuit in the country. In comparison, over the past decade, there were only about 80 ERISA excessive-fee cases filed across the country."

How Plan Sponsors Can Prepare for Forfeiture Lawsuits

"[Attorney Jamie Fleckner] recommends that fiduciaries make sure the plan document is 'consistent with what company and fiduciaries are looking for.' Fiduciaries should look holistically at the document, and 'if you want to offset, either mandate that or allow that.' ... [Attorney David Levine] makes a similar recommendation. Sponsors should look at their documents and evaluate their process to see if the two align."

The Essential Role of Plan Sponsors in Participant Beneficiary Designations

"Imagine diligently saving for decades, only to have your hard-earned retirement funds end up in the hands of an estranged ex-spouse or distant relative.... [T]his happens more often than you would think.... [P]lan sponsors can take proactive steps ... [1] Educate participants on beneficiary importance ... [2] Encourage regular updates ... [3] Promote the use of electronic records ... [4] Maintain clear and accessible records ... [5] Offer personal support and incentives."

The Impact of Fee Disclosure Regs on 403(b) Plan Sponsors and Participants: Detailed Survey Results (PDF)

"PSCA conducted a survey of 403(b) plan sponsors to determine what effect, if any, the recently conducted fee disclosures have had on not-for-profit organizations and their plan participants. The results show little impact on the behavior of participants and plan sponsors." [Editor's note: Detailed report of survey results in charts and graphs.]

Are Plan Sponsors Ready for Roth Catch-Ups?

"The implementation of this provision is extremely complex ... There are many nuances and intricacies that play out depending on the organization's current structure and systems in place ... 44 percent of respondents ... stated they are struggling with payroll logistics and only five percent are ready to go. Forty percent are still working on it but feel confident they will be ready by January 1st."