Top of Mind


Thanksgiving Edition

As we prepare for the Thanksgiving Holiday, there are many things for which I am thankful. While most have absolutely nothing to do with retirement plans, I thought I would share the ones that are retirement-related:

  • 403(b) plan sponsors are eliminating the 15-year catch-up election in droves — As I detailed in a previous edition of Top of Mind, I am, shall we say, not a fan of the 15-year catch-up election.  I hope to see a day in the not-so-distant future where virtually no plan sponsors include this provision in their retirement plans.
  • Plan sponsors are taking a good, hard look at revenue sharing and are eliminating or reducing revenue sharing in many cases — While not as marked a trend as the elimination of the 15-year catch-up election, I am grateful that revenue sharing payments, which were a mystery to many plan sponsors as recently as five years ago, are being brought under the microscope.  Plan features that are difficult to explain to participants are not my favorite, and revenue sharing is a shining example of such.  Thus, while I recognize how revenue sharing can benefit plan participants in certain circumstances, I am happy that it is receiving the scrutiny it deserves.
  • Some plan sponsors are recognizing that engaging  participants is difficult  and requires out-of-the-box thinking — The reality is that the very people who can benefit most from retirement plan engagement (i.e., younger employees who are far from retirement age) have limited interest and many lack the desire to learn. Thus, it takes creative thinking to motivate these individuals to take action.  Some plan sponsors have been rising to the task, designing interesting and, dare I say, even fun communication campaigns that are engaging the “unengageable.”

On behalf of Cammack Retirement Group, I hope that you and those you love have a most wonderful Thanksgiving!   

Note: This feature is to provide general information only, does not constitute legal advice, and cannot be used or substituted for legal or tax advice.

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