Tag: Employee Benefit Plans

Read Insights and Resources tagged with "Employee Benefit Plans"

Designing Employer Contributions to Encourage Greater Participant Savings

While matching contributions provide added incentive for employees to participate in a defined contribution (DC) plan, tailoring employer contributions can help maximize participant contribution rates. For instance, plan sponsors may want to reduce the matching percentage and increase the cap to see if the savings rate would increase without negatively impacting the participation rate.

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How to Help Increase Your Participants’ Retirement Savings: Auto Escalation

Numerous studies have found that in order to accrue adequate money to achieve a secure retirement, the average plan participant needs to contribute between 10–15% of their annual salary. Considering that default contribution rates for plans utilizing automatic enrollment are generally in the 3% to 6% range, it is a marked gap, and one that plan sponsors can help remedy.

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New EBSA Report Finds Deficiencies in Audit Quality

According to a U.S. Department of Labor Employee Benefits Security Administration (EBSA) Report issued May 2015, 39% of 400 audits reviewed by EBSA contained major deficiencies. This latest report indicates that the quality of employee benefit plan audits has not improved, but has, in fact, been worsening over previous studies.

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Recent Supreme Court Ruling Puts Onus on Employee Benefit Plan Sponsors…

A ruling by the Supreme Court in the case Tibble vs. Edison International last month makes it clear that plan sponsors have an ongoing fiduciary duty to monitor the investments in 401(k) plans. Although the Supreme Court decision was narrowly focused on the statute of limitations issue, there are broader implications that plan sponsors will need to consider.

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