Many academic and non-profit employers are trying to address the needs of the present employment marketplace with a retirement platform that is rooted in the past. (Photo: Shutterstock)
Recent news articles have noted that several colleges are joining forces to pool their employee retirement accounts and lower administrative costs.
This trend reflects a simple fact: Academic and non-profit institutions, like all employers today, are facing workplace pressures due to rising costs, disruptive technology, and the needs of a new generation of employees. To attract and retain talent in this environment, institutions must offer the most attractive benefits programs – without straining their administrative or financial resources.
Yet, many non-profit employers are trying to address the needs of the present employment marketplace with a retirement platform that is rooted in the past: the individual annuity contract (IAC). Over the past several decades, millions of academic and non-profit institution employees have participated in 403(b) plans based on IACs.
Key disadvantages of IACs
Probably due to a lack of understanding of their current plans' deficiencies and available alternatives, most schools and non-profits are continuing to still offer outdated IAC legacy plans. Such plans have several disadvantages versus newer group platforms:
Continue Reading for Free
Register and gain access to:
- Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
