Top of Mind: Trends that Matter
In our most recent edition of Trends that Matter, fixed-dollar recordkeeping fees and ESG investing were the hot issues among retirement plan sponsors. While those trends remain current, others have emerged that should be top of mind with plan sponsors:
- An increasing number of plan sponsors are realizing that their participant engagement metrics are not where they want them to be, and thus, are turning to their service providers for help. — Our firm is busier than ever with participant engagement initiatives, primarily due to client demand and the realization that auto-enrollment was not a panacea. And the same can be said for recordkeepers, who are working with plan sponsors to address the difficult problem of participants who are not engaged, and, moreover, have no desire to be engaged. The most successful retirement plans (including many of the finalists and winners for this year’s PLANSONSOR Retirement Plan Sponsor of the Year awards) are those that are overcoming the participant engagement obstacle.
- Plan fiduciaries are taking their responsibilities even more seriously than they have in the past. — We have seen a fairly dramatic uptick in the type of work (i.e., fiduciary training, investment policy statement updates, etc.) that tells us that fiduciaries are dedicated to ensuring that their retirement plans are operated in a prudent fashion. There is little doubt that recent litigation and the press generated by the DOL Fiduciary Rule (though the rule would affect service providers more than plan sponsors) have had a hand in this trend.
I hope that you can take full advantage of the latest industry Trends that Matter!
Editor’s Note: Trends that Matter is a reoccurring feature in Top of Mind, where we focus on key industry trends that emerge from our client base that are of significant importance to plan sponsors.
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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