While litigation is not widespread, it's important for plan sponsors to look at operations and shore up practices since there was action on 43 defined contribution cases during the first quarter of 2023, according to Mercer.
Slightly upping default auto-escalation rates - from 1% to 2% - and escalation intervals in defined contribution plans could improve savings without discouraging participation, according to Voya research.
The firm cited a "technical issue" in a letter of acceptance to the Financial Industry Regulatory Authority for overstating projections on customer statements for nearly a year and failing to quickly address customer reports.
While 38% of Gen X and 29% of baby boomer investors expect a prolonged period of severe downturn, 56% of Gen Z and 50% of millennials say they still expect to retire on time, according to the Nationwide Retirement Institute.
Expanding retirement plan coverage so that all workers can save for retirement is key to improving retirement security, particularly small companies that can take advantage of SECURE 2.0's new provisions, says a new study.
The House Financial Services Committee approved a bill that would permit CITs in all 403(b) plans to grant access to these lower-cost funds for nonprofit employees and public workers.
Driven by lower fees, plan sponsors often choose collective investment trusts (CITs) as the preferred vehicle for target date funds over mutual funds, according to Morningstar.
The cuts in savings mirror a larger financial challenge, with 30% of Americans finding it difficult to make ends meet and 39% lacking nonretirement savings sufficient to cover one month of living expenses, says a new study.
The auto-enrollment and auto-escalation provisions within the new legislation could be perhaps the biggest catalyst for helping American workers accumulate wealth, according to a new report.
A higher employer 401(k) matching rate corresponded with a greater likelihood for employees to cash out of retirement plans when switching jobs, according to a new survey.
DebugScreen: mobile
{
"author": {
"name": "Kristen Beckman",
"webUrl": "/author/profile/kristen-beckman/",
"description": "",
"imageLarge": "https://secure.gravatar.com/avatar/f16d6fc2845f417ea0e93a3f2b6cd37d?s=136&d=mm&r=g",
"estimate": 214,
"social": [],
"articles": [
{
"uri": "/2023/06/08/lawsuits-legislation-and-secure-2-0-what-plan-sponsors-need-to-know-about-2023-trends/",
"title": "Lawsuits, legislation & SECURE 2.0: Top compliance trends employers need to know",
"byline": "Kristen Beckman",
"kicker": "Update",
"prettyDate": "June 08, 2023",
"timeToRead": "4 minute",
"image": {
"uri": "https://images.benefitspro.com/contrib/content/uploads/sites/412/2018/10/bigstock-Investment-in-Financial-Return-61568840-money-bigstock.jpg",
"width": "600",
"height": "388"
},
"authors": [
{
"webUrl": "/author/profile/kristen-beckman/",
"name": "Kristen Beckman"
}
],
"kickerNode": [
{
"uri": "/update/",
"sectionName": "Update"
}
],
"summary": "While litigation is not widespread, it's important for plan sponsors to look at operations and shore up practices since there was action on 43 defined contribution cases during the first quarter of 2023, according to Mercer.",
"body": null
},
{
"uri": "/2023/06/06/fear-not-plan-sponsors-boosting-401k-auto-features-actually-increases-participation/",
"title": "Fear not, plan sponsors: Boosting 401(k) auto-features actually increases participation",
"byline": "Kristen Beckman",
"kicker": "Research",
"prettyDate": "June 06, 2023",
"timeToRead": "3 minute",
"image": {
"uri": "https://images.benefitspro.com/contrib/content/uploads/sites/412/2022/06/puzzle-401k-man-employee.jpg",
"width": "620",
"height": "413"
},
"authors": [
{
"webUrl": "/author/profile/kristen-beckman/",
"name": "Kristen Beckman"
}
],
"kickerNode": [
{
"uri": "/research/",
"sectionName": "Research"
}
],
"summary": "Slightly upping default auto-escalation rates - from 1% to 2% - and escalation intervals in defined contribution plans could improve savings without discouraging participation, according to Voya research.",
"body": null
},
{
"uri": "/2023/06/05/vanguard-fined-800k-over-statement-errors-for-money-market-funds/",
"title": "Vanguard fined $800K over statement errors for money market funds",
"byline": "Kristen Beckman",
"kicker": "News",
"prettyDate": "June 05, 2023",
"timeToRead": "3 minute",
"image": {
"uri": "https://images.benefitspro.com/contrib/content/uploads/sites/412/2023/06/Vanguard-Group-HQ-Article-202306051019.jpg",
"width": "620",
"height": "372"
},
"authors": [
{
"webUrl": "/author/profile/kristen-beckman/",
"name": "Kristen Beckman"
}
],
"kickerNode": [
{
"uri": "/news/",
"sectionName": "News"
}
],
"summary": "The firm cited a \"technical issue\" in a letter of acceptance to the Financial Industry Regulatory Authority for overstating projections on customer statements for nearly a year and failing to quickly address customer reports.",
"body": null
},
{
"uri": "/2023/06/02/is-this-a-financial-crisis-4-in-10-retirement-savers-say-yes-though-generations-diverge/",
"title": "Is this a financial crisis? 4 in 10 retirement savers say yes, though generations diverge",
"byline": "Kristen Beckman",
"kicker": "Research",
"prettyDate": "June 02, 2023",
"timeToRead": "3 minute",
"image": {
"uri": "https://images.benefitspro.com/contrib/content/uploads/sites/412/2023/06/image620x372-1.jpg",
"width": "620",
"height": "372"
},
"authors": [
{
"webUrl": "/author/profile/kristen-beckman/",
"name": "Kristen Beckman"
}
],
"kickerNode": [
{
"uri": "/research/",
"sectionName": "Research"
}
],
"summary": "While 38% of Gen X and 29% of baby boomer investors expect a prolonged period of severe downturn, 56% of Gen Z and 50% of millennials say they still expect to retire on time, according to the Nationwide Retirement Institute.",
"body": null
},
{
"uri": "/2023/05/31/closing-the-retirement-savings-gap-employer-offerings-vs-workers-needs/",
"title": "Closing the retirement savings gap: Employer offerings vs. workers' needs",
"byline": "Kristen Beckman",
"kicker": "Research",
"prettyDate": "May 31, 2023",
"timeToRead": "5 minute",
"image": {
"uri": "https://images.benefitspro.com/contrib/content/uploads/sites/412/2020/02/401k-sign-wall-old-young.jpg",
"width": "616",
"height": "411"
},
"authors": [
{
"webUrl": "/author/profile/kristen-beckman/",
"name": "Kristen Beckman"
}
],
"kickerNode": [
{
"uri": "/research/",
"sectionName": "Research"
}
],
"summary": "Expanding retirement plan coverage so that all workers can save for retirement is key to improving retirement security, particularly small companies that can take advantage of SECURE 2.0's new provisions, says a new study.",
"body": null
},
{
"uri": "/2023/05/30/collective-investment-trusts-house-bill-advances-to-allow-lower-cost-funds-in-403bs/",
"title": "Collective investment trusts: House bill advances to allow lower-cost funds in 403(b)s",
"byline": "Kristen Beckman",
"kicker": "News",
"prettyDate": "May 30, 2023",
"timeToRead": "3 minute",
"image": {
"uri": "https://images.benefitspro.com/contrib/content/uploads/sites/412/2019/03/403b-retirement-plan.jpg",
"width": "617",
"height": "408"
},
"authors": [
{
"webUrl": "/author/profile/kristen-beckman/",
"name": "Kristen Beckman"
}
],
"kickerNode": [
{
"uri": "/news/",
"sectionName": "News"
}
],
"summary": "The House Financial Services Committee approved a bill that would permit CITs in all 403(b) plans to grant access to these lower-cost funds for nonprofit employees and public workers.",
"body": null
},
{
"uri": "/2023/05/26/target-date-funds-plan-sponsors-adopting-the-lower-cost-option-for-long-term-investments/",
"title": "Target date funds: Plan sponsors adopting the lower-cost options for long-term investments",
"byline": "Kristen Beckman",
"kicker": "Research",
"prettyDate": "May 26, 2023",
"timeToRead": "4 minute",
"image": {
"uri": "https://images.benefitspro.com/contrib/content/uploads/sites/412/2020/04/TDFs-target-date-funds-advisor-sponsor-man.jpg",
"width": "617",
"height": "409"
},
"authors": [
{
"webUrl": "/author/profile/kristen-beckman/",
"name": "Kristen Beckman"
}
],
"kickerNode": [
{
"uri": "/research/",
"sectionName": "Research"
}
],
"summary": "Driven by lower fees, plan sponsors often choose collective investment trusts (CITs) as the preferred vehicle for target date funds over mutual funds, according to Morningstar.",
"body": null
},
{
"uri": "/2023/05/18/throw-cash-in-a-401k-1-in-4-americans-have-cut-back-on-retirement-savings/",
"title": "Throw cash in a 401(k)? 1 in 4 Americans have cut back on retirement savings",
"byline": "Kristen Beckman",
"kicker": "Research",
"prettyDate": "May 18, 2023",
"timeToRead": "5 minute",
"image": {
"uri": "https://images.benefitspro.com/contrib/content/uploads/sites/412/2017/10/shutterstock_406253761-401k-break-explode.jpg",
"width": "700",
"height": "466"
},
"authors": [
{
"webUrl": "/author/profile/kristen-beckman/",
"name": "Kristen Beckman"
}
],
"kickerNode": [
{
"uri": "/research/",
"sectionName": "Research"
}
],
"summary": "The cuts in savings mirror a larger financial challenge, with 30% of Americans finding it difficult to make ends meet and 39% lacking nonretirement savings sufficient to cover one month of living expenses, says a new study.",
"body": null
},
{
"uri": "/2023/04/26/secure-2-0-big-boost-for-small-retirement-plans-and-participants/",
"title": "SECURE 2.0: Big boost for small retirement plans and participants",
"byline": "Kristen Beckman",
"kicker": "Research",
"prettyDate": "April 26, 2023",
"timeToRead": "4 minute",
"image": {
"uri": "https://images.benefitspro.com/contrib/content/uploads/sites/412/2023/01/SECURE-2.0-Act-Article-202301211414.jpg",
"width": "620",
"height": "372"
},
"authors": [
{
"webUrl": "/author/profile/kristen-beckman/",
"name": "Kristen Beckman"
}
],
"kickerNode": [
{
"uri": "/research/",
"sectionName": "Research"
}
],
"summary": "The auto-enrollment and auto-escalation provisions within the new legislation could be perhaps the biggest catalyst for helping American workers accumulate wealth, according to a new report.",
"body": null
},
{
"uri": "/2023/04/20/pre-retirement-leakage-americans-are-cashing-out-their-401ks-at-alarming-rate/",
"title": "Pre-retirement 'leakage'? Job switchers are cashing out their 401(k)s at alarming rate",
"byline": "Kristen Beckman",
"kicker": "Research",
"prettyDate": "April 20, 2023",
"timeToRead": "5 minute",
"image": {
"uri": "https://images.benefitspro.com/contrib/content/uploads/sites/412/2019/03/leakage-money-retirement-plan-man.jpg",
"width": "619",
"height": "412"
},
"authors": [
{
"webUrl": "/author/profile/kristen-beckman/",
"name": "Kristen Beckman"
}
],
"kickerNode": [
{
"uri": "/research/",
"sectionName": "Research"
}
],
"summary": "A higher employer 401(k) matching rate corresponded with a greater likelihood for employees to cash out of retirement plans when switching jobs, according to a new survey.",
"body": null
}
]
}
}
