Reflections for the End of the Year
- November 13, 2020
- Posted by: Jeff Atwell
- Category: Financial Plan, Resources
As 2020 draws to a close, it’s a great time for qualified plan sponsors to reflect on their goals and objectives for sponsoring a retirement plan. In addition, they should reflect on whether the plan is providing the participants with the best means possible to reach their retirement income goal.
This is a great time to consider changes to the plan, since the Cycle 3 restatement cycle has started, which will require all plans to be restated. I have prepared the following list of reflection points to think about and consider. The attached article also will provide additional insights.
- Reflect on how the Plan’s service providers supported your company’s and participants’ needs during the pandemic.
- Reflect on the Plan features. Were there Plan features participants could use to assist in supporting their financial needs?
- Reflect on the Plan features which have been beneficial to participants and which may need to be extended past 12/31/20.
- Reflect on Plan features which may create an administrative burden on payroll or HR staff, such as eligibility, entry dates, and the definition of compensation.
- Reflect on the safe harbor provisions being utilized or not being utilized. For calendar year plans, changes for 2021 have to be announced by 12/1/20.
- Reflect on the Plan provisions which could be implemented to assist participants in getting back on track to reach their retirement income goals.
- Reflect on any barriers participants might have to reaching their retirement income goals, such as too many investment choices, or no access to financial wellness or investment advice resources.
- Reflect on how to effectively communicate with participants utilizing technology.
- Reflect on the governance of the Plan by the Plan fiduciaries. Do the fiduciaries of the Plan have the time, knowledge, or inclination to fulfill their responsibilities?
- Reflect on whether to retain or outsource fiduciary responsibility to a qualified independent third party fiduciary.