Summary paragraph: The PLANASPONSOR Plan Sponsor
of the Year awards program proves what an integral role advisers play in guiding the nation's most successful plans.
Increasing percentages of employers offering matching contributions illustrate plan sponsor
support in providing retirement security," says Bridget Bearden, Strategic Insight's head of defined contribution retirement research.
Summary paragraph: Plan sponsor
activity changes direction
Moreover, service providers are not required to disclose their financial interest in the funds to the plan sponsor
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.
An ERISA section 408(b)(2) audit by an independent fiduciary provides a plan sponsor
with an objective examination of vendor processes, performance, services, compensation, and conflicts.
Another matter that may trip up the plan sponsor
is the census that must be prepared at the end of each plan year.