Video Resources for Plan Sponsors
Plan Sponsors are expected to operate in a highly regulated and complex fiduciary environment. To aid our plan sponsors to stay informed, we provide the following “on demand” video resources on a variety of important topics as it relates to corporate retirement plans.
Click any of the links below to view the video, as well as additional resources from Blue Prairie Group.
Does your 401(k) plan have features to help highly compensated employees maximize their deferrals while remaining compliant with new regulations?
There are many areas that can go wrong with a plan over time. You might be paying too much, have increased exposure to litigation issues, or simply be paying for services you just aren’t using and don’t need.
Regulation 408(b)(2) requires your plan expenses to be documented, reasonable and conflict free. Many times your 401(k) plan-related expenses can be reduced without changing your retirement plan provider.
Recent 401(k) regulation has given plan participants the benefits of greater transparency, better communication, and increased administrative rigor. Yet despite these advances, fiduciary lawsuits involving 401(k) plans rank among the most common workplace-related lawsuits in the United States today. Unfortunately, many claims are filed by plan participants – especially former plan participants.
While pension plan deficits are allowed by law, the period allowed to make up the funding deficit has been significantly reduced by the Pension Protection Act.
Accounting rules require corporate employers to post a liability on their balance sheet if their Defined Benefit Pension Plan’s liabilities exceed the plan’s assets. Finance executives should have processes in place to control their financial risks and protect their financial statements from the impact of their Pension Plan.
Selecting a plan advisor who is a retirement specialist is one of the most important decisions a Plan Sponsor can make. Plan Sponsors can get into trouble when they fail to apply the processes and safeguards dictated by ERISA requirements; including rules governing the plan advisor selection process.
New regulations look at whether plan advisor fees are eroding the returns received by your participants and if so, may hold you, the Plan Sponsor, responsible – not the investment company or the advisor!
The 408(b)(2) regulation requires plan service providers to make written disclosures about their services, compensation and fiduciary status to the plan fiduciaries. It is now the Plan Sponsor’s explicit responsibility to ensure each service provider submits a written disclosure and that the written disclosure contains enough detail to evaluate the provider’s fees to determine reasonableness.
The challenge many Plan Sponsors face is determining whether the service mix and fees are reasonable while ensuring any conflicts of interest are managed appropriately. Since this evaluation may require specialization and processes beyond the reach of most Plan Sponsors, many courts have said that the use of knowledgeable advisors may help evidence a prudent process.
The harsh economic climate has increased interest in “financial wellness” which could be an opportunity for your company to pursue two important goals with one move: Increase retirement savings and improve productivity through the availability of Financial Wellness programs.
Financial stress is directly linked to reduced employee productivity and morale. A financially un-fit employee is typically less healthy, and less able to save for retirement. How can you help your employees gain their financial fitness footing? You may need more than just a company Retirement Plan.
Employee financial stress may delay retirement. Delayed retirements cost you money. Your company can potentially avoid added years of both disability and health insurance premiums that may increase dramatically with age, not to mention tenured salary.