Bill Would Create Annuity Safe Harbor
In theory, the promise of guaranteed income in retirement seems like a great idea. The 2006 Pension Protection Act took steps to limit the fiduciary implications of including annuities in defined contribution (DC) plans. But according to Callan’s 2019 DC Trends Survey, few plans offer annuities either as a form of distribution payment (11%) or as […]
Steps to Make DC Plans Good (and Avoid Bad or Ugly Outcomes)
View My Paper Remember the 1966 spaghetti western “The Good, the Bad, and the Ugly”? The promise of a vast fortune creates a partnership between the Good (Clint Eastwood), the Bad (Lee Van Cleef), and the Ugly (Eli Wallach) before pitting them against one another in the search for the loot, with plenty of gorgeous cinematography […]
Two Questions Could Save Your DC Plan Millions
In our recent paper, “Dear CFO: Two Questions Could Save Your Company Millions in Litigation Costs,” we addressed some of the challenges facing defined contribution (DC) plans.
Compensation Applied Incorrectly Costs Big Bucks
Translating the legal definition of “compensation,” as captured in the defined contribution (DC) plan document, to payroll programming is complex. When it is applied incorrectly, it leads to high costs to calculate and fund missed compensation deferrals or contributions, along with the costs to correct the error via the Internal Revenue Service Employee Plans Compliance […]
2019 DC Trends Survey
Defined contribution plan sponsors are continuing their intense scrutiny of fees, according to Callan’s 2019 DC Trends Survey, while also adding participant communication and financial wellness as top priorities for this year
DC Plan Sponsors and Participants Get Disaster Relief
In response to Hurricanes Florence and Michael, and the 2018 California wildfires, the Internal Revenue Service (IRS) and Department of Labor (DOL) have extended relief to those affected by the disasters from certain defined contribution (DC) plan requirements. Individual relief for those impacted by the hurricanes: Hurricane victims will have easier access to DC plan […]
Baby Steps on Auto Portability
The Department of Labor (DOL) has issued a proposed rule addressing “auto portability,” a mechanism intended to automatically reconnect defined contribution (DC) plan participants with accounts they may have inadvertently left behind or forgotten about after leaving an employer. America’s highly mobile workforce drives millions of job changes each year. Rolling balances between plans is a source […]
Cybersecurity for DC Plans
Callan’s experts describe the best ways for defined contribution (DC) plans to prepare for what will be an almost inevitable cyberattack.
Regulation Moves to Expand MEPs
President Trump issued an executive order in August directing the U.S. Department of Labor (DOL) to examine policies that expand the circumstances where employers, especially small- and mid-sized businesses, may sponsor or adopt a multi-employer plan (MEP) as a workplace retirement savings option, subject to appropriate safeguards. In response, the DOL issued a proposed regulation on October 23 […]
What Has Changed Over the Years with DC Plans
Callan just opened the 2019 Defined Contribution Trends Survey, the 12th we have conducted in its current incarnation, and we thought it would be helpful for plan sponsors to see how the industry has evolved over time. Below are some highlights from a predecessor version of the survey published in 1992 and 1998