Commentary: With some $2.4 trillion sucked out of retirement accounts since early last year, lawmakers have predictably made the 401(k) system a flaming target for change, and, also predictably, their ideas are way off base-except for one.
Several of the nation’s largest financial institutions have already stopped footing the bill for their executives’ financial planning, which historically has been a staple of compensation packages for CEOs, CFOs and other top brass.
Corporations that sponsor 401(k) plans may have more pressing issues at the moment, but that hardly means they should ignore the waning confidence in what has become their primary retirement benefits offering.
The Perfect Plan, if done right, is more than just a compelling retirement benefit—it’s an employer’s competitive weapon, one that helps lure and retain key talent and serves as an underlying driver of productivity and profitability. Here’s a look at what could be the future of corporate retirement benefits for everyone.
A lawsuit argues that the plan sponsored by the country’s largest private employer used retail funds rather than institutional ones, and had too many active funds. It’s the most recent in a string of such cases, and benefits attorneys note that until there are definitive rulings in these cases, more large companies will likely be hit.
By voicing its opinion on a case involving workers at Deere & Co., the Department of Labor has sent a message that courts need to carefully examine the claims of 401(k) participants in each of the individual suits currently pending.