When defined benefit plan participants take a lump sum, they move out of the plan. That means plan sponsors that cash out participants have a smaller plan with tighter variables—including contribution rates.
As part of our 90th anniversary, Workforce is talking to some of the people and organizations that helped influence today's workplace. In this installment, writer Patty Kujawa speaks with David Wray, the retired president of the Plan Sponsor Council of America, on his thoughts about the evolution of defined contribution plans.Read More
This year's Sept. 7 kickoff date for National 401(k) Day "is a great trigger event for plan sponsors to have the conversation of how to get the most out of your 401(k)," says Chris Augelli, vice president of sales operations at ADP Retirement Services. "But it's not a one-time event. It should be an ongoing dialogue."Read More
Participants in defined contribution plans should receive the first of two fee-disclosure notices by Aug. 30. This notice should include a listing of all the investments available in the plan as well as the options' fees and historical performance.Read More
Although financial stress exists for a large number of employees, a recent survey indicates that more people are stashing away enough for life after work.
Although the plan is a separate program from company retirement plans, sponsors often aren't telling their workers about it as a way to improve their benefits.
BayCare Health System of Florida has geared a new retirement savings push toward women after realizing that more than three-quarters of its workforce were female, generic savings seminars were not well attended, and women historically haven't been good savers.
Consultants recommend that workers save 10 to 12 percent of pay annually, but a new study shows that 42 percent of women contribute the lowest amount—1 to 5 percent—of pay to their retirement accounts.
More than half of Transamerica Retirement Survey respondents say they don't think they are building a sufficient nest egg—a percentage consistent for all ages of workers.Read More
Before a plan can be terminated, it needs to have all the funds necessary to pay benefits to employees. Once that happens, plan sponsors can start the process of shutting down the plan.Read More