Plan Design Matters
- June 29, 2020
- Posted by: Jeff Atwell
- Category: Economics, Financial Plan, Resources
As we have discussed in past blog posts, our mission is to Define a Retirement Plan Standard of Excellence. Two of the key elements in Defining a Retirement Plan Standard of Excellence are meeting the goals and objectives of the plan sponsor and inspiring participants to save for retirement. These two elements can be accomplished and enhanced through plan design. The attached article, Design Matters, by DCIIA points out three areas to accomplish this.
Design Matters: Selected Findings
- Automatic plan features work
- The current DC system can do better, even without additional legislative or regulatory action
- Limiting asset “leakage” works
Each one of the areas discussed in the article provide important talking points for retirement plan professionals as plan sponsors begin to evaluate their plans and the impact that the COVID pandemic has had on their retirement plan. As the country emerges from the COVID pandemic, the time could not be better to prove the private retirement system provides a much better resource for participants to reach their retirement goals.
Discussing with plan sponsors and implementing the 3 topics discussed in the DCIIA article will go a long way towards proving the private retirement system is better than any state or federally run private sector retirement plan.
By Jeff Atwell, AIF, C(k)P, CPFA , Principal, TRG Fiduciary Services, LLC