The resulting white paper, " Aligning goals, improving outcomes: 2015 Defined Contribution Plan Sponsor
Survey Findings," reveals that although plan sponsors
have a strong and growing sense of responsibility for helping employees achieve a financially secure retirement, several disconnects exist between the goals they identify for their defined contribution (DC) plans and how they evaluate success.
These cost savings can then be passed on to the plan sponsor
and plan members.
The plan sponsor
can correct the failure, pay a sanction, satisfy any additional requirements and enter into a closing agreement with the IRS.
This is an area for pension plan advisers to exert influence on the plan sponsor
and suggest periodic reviews of the plan document--especially as the company gets bigger and starts having more people and dollars in the plan--to ensure full understanding of the sponsor's fiduciary obligations.
401(k) plan sponsor
generally make one of two types of contributions, at least for NHCEs:
Allowing plan sponsors
to restrict payment options solely to a lump sum would be particularly helpful where the plan sponsor
has historically not allowed extended payment options, yet a few participants enjoy an extended payment option as a protected benefit from a former plan that was merged into an existing plan.
MetLife's Retirement Income Practices Study: Perspectives of Plan Sponsors
and Recordkeepers for Qualified Plans, released today, examines the dynamics of the plan sponsor
-recordkeeper relationship with regard to the provision of lifetime income options in qualified plans.
Fiduciary Awareness is Slipping: More than one-third (37 percent) of plan sponsors
don't realize they're fiduciaries, up from AB's 2011 plan sponsor
Another matter that may trip up the plan sponsor
is the census that must be prepared at the end of each plan year.
But for some plans, there's an additional step-helping the plan sponsor
decide the funding arrangement.
Robert DiMeo, of DiMeo Schneider & Associates, in Chicago says, "We helped one plan sponsor
reduce annual plan expenses by over $1 million in a year.
Also, eligible employees must have received notice before the beginning of the plan year, advising them that the plan sponsor
might choose to amend the plan in this manner.