8 steps for Defined Contribution plans to consider in 2022
n the United States, defined contribution (DC) plans are facing unprecedented problems.According to Groom Law Group, the number of litigations under the Employee Retirement Income Security Act of 1974 (ERISA) reached a new high in 2020, with more than 200 new class action claims filed, and an increase of 80% in 2019.
2021 PLANSPONSOR Best Practices Conference Summary: ERISA, Outsourcing, and Benchmarking
Plan sponsors have a fiduciary duty to ensure that their company's retirement plans are properly designed and managed.
Rise in Retirement Plan Excessive Fee Litigations
The number of lawsuits involving 401(k) plans has increased significantly in recent years, peaking in 2020. The number of ERISA lawsuits in 2020 saw an 80% increase compared to 2019.
Does your Retirement Plan have Automatic Enrollment?
According to a recent study “Automatic enrollment: The Power of the Default” by Jeffrey W. Clark and Jean A. Young from Vanguard, automatic enrollment not only triples the participation rate of new workers but also causes a significant proportion to raise their deferral rates over time.
Reconsider Adding Revenue-Sharing Funds To Your Investment Menu
You may want to consider removing revenue-sharing plans from the investment menu, as they actually increase your spending and lower income.
4 Key Steps for Financial Advisors
Having to manage several retirement plans at once is a challenging task at the best of times. Add to that 2020, a year that saw a pandemic threaten retirement plans nationwide, and the task becomes that much more difficult.