Monday, April 06, 2020

What are some of the concerns that plan sponsors have today regarding the operation of their retirement plan(s)?

  • Fiduciary issues - both plan operation and investments
  • Plan expenses - both implicit and explicit
  • Education - providing the information employees need to save enough for retirement
  • Providing independent investment advice to the plan trustees and participants
  • Having a sound retirement program that will be competitive to recruit, retain, reward and retire employees.

At Asset Strategy Retirement Plan Consultants, each of our consultants has more than 20 years experience with providing retirement solutions to plan sponsors. We are an independent Registered Investment Advisory and pension consulting firm serving the corporate and healthcare community. We provide Inspired Retirement Solutions based on your goals and concerns.

Defined Benefit Plans – Many plan sponsors today would like to terminate,but that is not economically feasible. We work with you and your/our actuaries to provide stochastic forecasting to help get the plan where it needs to be on a fully funded basis. Reducing fixed costs substantially and improving administration are parts of the total solution while the plan is being fully funded.

Defined contribution plans – Many employees are not going to be able to retire when they would like because of low accumulations, and current education is not getting the job done. As a plan sponsor you may be concerned with this as well as investment related expenses.

Here are some questions that may be applicable to your organization:

  • Did you know that fiduciary practices have been the number one concern of plan sponsors for the last two years? Are your investments managed in accordance with applicable laws, trust documents and written investment policy statements? Have you reviewed investment policy in last 2 years?
  • Education in retirement plans is not getting the job done. From 1984 - 2004 the average annual return for the S&P 500 was 12.98% while the average annual return for the average stock fund investor was 3.51%. How is the average participant in your plan doing? Will they have enough to retire on?
  • Did you know that increasing the number of investment options in a 401k/403b plan increases fiduciary responsibility, increases confusion, and often decreases participation?
  • Many defined benefit plan sponsors would like to terminate their plans but it is too costly to do so. While freezing a DB plan helps to reduce the funding pain, the plan is still fully operational on an administrative and investment level. If you could drastically improve the administration of your defined benefit plan and reduce the amount of time your organization spends on administration while reducing fixed costs potentially between 20-40%, would that be of interest to you?