Top of Mind


Trends that Matter

In our most recent issue of Trends that Matter, participant engagement and fiduciary responsibility were the hot issues for retirement plan sponsors.  While those trends remain current, others have emerged that should be top of mind with plan sponsors. 

  • The nonprofit sector is reacting to the university fee litigation.
    While this trend will no doubt become more significant once some of the facts of these cases are resolved, plan sponsors in the university, healthcare, and other tax-exempt space have not been sitting on their hands; having taken actions that they assume will be prudent in protecting their retirement plans.   Proprietary funds, retail share classes, and even actively managed funds appear to be some of the early casualties of this developing trend. 
  • Recordkeepers are quickly evolving their fee levelization offerings. 
    Over the last several months, recordkeepers have significantly increased the options they offer for allocating fees as equally as possible among participants in plans where investments share revenue.  For example, until recently, only a select few recordkeepers offered a daily valuation model, where investment changes and related revenue sharing were accounted for on a daily basis, ensuring all participants paid the same fee.  However, now, other major recordkeepers are offering this model and have added additional fee levelization options as well. 

I hope that you can take full advantage of the latest industry trends that matter! 

Trends that Matter is a reoccurring feature in Top of Mind where we focus on key industry trends that have emerged and 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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