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Revisiting Retirement Plan Designs After the Global Pandemic

"Financial stressors will remain with all of us for some time ... [D]iscussions will also renew regarding ways to protect retirement assets against volatility in order to better secure the prospect of a secure retirement with predictable lifetime income.... With the SECURE Act, employers who sponsor defined contribution retirement plans ... now have: [1] new participant disclosure obligations; [2] the ability to adopt certain portability design features related to lifetime income investment options; and [3] guidelines to encourage inclusion of lifetime income investment options in plan investment line-ups."

Conduct a Self-Audit to Avert ERISA Plan Fiduciary Liability (PDF)

"The scope of a fiduciary self-audit will vary depending on an organization's needs and types of benefit plans, and must be tailored to the situation. A self-audit ... will require development of a road map to collect the requisite materials such as plan documents, meeting minutes, plan reports, plan investment and fee information, investment, trust and service provider agreements and all other necessary plan information."

403(b) Vendor Selection Tips

"Higher education and other 403(b) plans were typically established with a different goal than 401(k) plans. Therefore, 403(b) plan sponsors may want to step back and reevaluate why they're offering a retirement plan, what are the goals for the plan, what are the different recordkeeping structures available, and how this all aligns with their institution's goals. A traditional vendor vetting process would then follow with a special emphasis on the features and services that can most make a difference in their specific situation."

What Issues Should Be Addressed in a Benefits Tech Policy? (PDF)

"The organization's parameters and vetting process for usage of technological tools handling sensitive employee data.... Standards for service providers and tech tools.... Standards for employees establishing and maintaining use of the benefits tech tools.... Cybersecurity insurance requirements.... Plan fiduciary responsibility."

The System of Employer-Provided Retirement Benefits Is at a Crossroads

"In order for employers to retain control over the very tools that enable them to compete in the race for talent, it is important for employers to consider their own philosophy concerning employee benefits and the types of programs that they desire to offer their workers across their workforce. It is also necessary to assess compliance efforts with any programs that may be mandated by changing laws."

Explain The Risk When You De-Risk

"Suggested topics to address in communications [to plan participants] include: [1] Description of the plan benefit options and explanation of the lump sum calculation; [2] Explanation of the pros and cons of the window options in an objective, unbiased tone; [3] The relative value of a lump sum compared to the normal form of benefit under the plan ... [4] Voluntary nature of the window and right to defer benefit commencement; [5] If the window includes an annuity risk transfer option, explain the difference between a plan annuity and an annuity contract outside the plan, and the change from a PBGC protected benefit to an annuity subject to State Insurance Guarantees[.]"