Reflections for the End of the Year

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.

    1. Reflect on how the Plan’s service providers supported your company’s and participants’ needs during the pandemic.
    2. Reflect on the Plan features. Were there Plan features participants could use to assist in supporting their financial needs?
    3. Reflect on the Plan features which have been beneficial to participants and which may need to be extended past 12/31/20.
    4. 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.
    5. 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.
    6. Reflect on the Plan provisions which could be implemented to assist participants in getting back on track to reach their retirement income goals.
    7. 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.
    8. Reflect on how to effectively communicate with participants utilizing technology.
    9. 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?
    10. Reflect on whether to retain or outsource fiduciary responsibility to a qualified independent third party fiduciary.

Download button




By Jeff Atwell, AIF, C(k)P, CPFA , Principal, TRG Fiduciary Services, LLC


Leave a Reply