Monday, February 22, 2021
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If you’ve read an article about 401(k) plans over the last 10 years, more often than not, it has been about how 401(k) fees are excessive, egregious and ruining the life savings of hard-working Americans. Many of these articles, however, don’t tell the whole story. It’s time to dispel some of the myths.
First, let’s clear some things up. When looking at ERISA (Employee Retirement Income Security Act of 1974), which governs 401(k) plans, it clearly states that 401(k) fees shall be REASONABLE for the products and services delivered. Nowhere in ERISA does it say that a plan must have the lowest fees.
Black History Month is an annual celebration of achievements by African Americans. It provides designated time to recognize African Americans’ central role in U.S. history.
Also known as African American History Month, the event grew out of “Negro History Week,” the brainchild of noted historian Carter G. Woodson, also known as the Father of Black History, and other prominent African Americans.
Since Gerald Ford officially recognized Black History Month in 1976, every U.S. president has officially designated the month of February as Black History Month. Other countries around the world, including Canada and the United Kingdom, also devote a month to celebrating Black history. Former President Ford encouraged the public to “seize the opportunity to honor the too-often neglected accomplishments of Black Americans in every area of endeavor throughout our history.”
Monday, January 25, 2021
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Increasing retirement plan participation has always been a priority for employers, plan providers and advisors. The motivations behind the push vary, from improving discrimination testing results or increasing plan assets for more bargaining power to simply bettering overall financial wellness. Yet boosting participation is a constant challenge, especially today in the midst of a global pandemic that’s caused many to lose jobs or take pay cuts.
So how can employers drive participation rates?
Many folks point to automatic enrollment and automatic deferral increases. These features have definitely had a positive impact on retirement participation and savings rates. But not all companies embrace the concepts. What’s a better way to move the needle? The 1% challenge.GET THE LATEST BREAKING NEWS HERE SIGN UP FOR GOLOCAL FREE DAILY EBLAST
Houston Texans President Jamey Rootes leads with humility in trying times bizjournals.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from bizjournals.com Daily Mail and Mail on Sunday newspapers.
Wednesday, December 16, 2020
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To drive plan participation, 69% of companies use an auto-enroll feature with their 401(k)s. This essentially allows the employer to enroll eligible employees unless they affirmatively elect not to participate. It can be a great way to increase participation in your company’s retirement plan. However, there are pitfalls to avoid.
In some situations, employees’ wages would be reduced by the plan’s default contribution percentage, sometimes as low as 2% or 3%. A potential issue is that the default deferral rates could cause employees to contribute less than they would if they actively signed up for a plan on their own. That’s because many employees who are auto-enrolled leave their savings rate at the low initial percentage. Over time, that means less for workers’ total retirement savings.