Unreasonable The funeral directors say there are a number of pre-paid funeral plan providers
which take unreasonable commissions, potentially leaving the purchaser without enough funds to cover the cost of a funeral.
Rick Irace, became chief operations officer (COO) of the Ascensus retirement division--a recordkeeper that focuses on small plans--three years ago, after working for a midsize to large plan provider
for over 20 years.
Action is needed because 95% of the market is voluntarily regulated by the Funeral Planning Authority (FPA), which lacks the power to prevent pre-paid plan providers
from trading and whose code of practice is not legally binding, according to ministers.
Check your plan provider
is registered with the Funeral Planning Authority.
"Moreover, the implications of securing a spot on DC advisors' consideration sets can be huge -- as these advisors work with an average of just 2.6 plan providers
across all of their DC business."
The Institute recommends that plan providers
keep initiating these discussions with employers and encourage advisors to do the same.
The report, by Liverpool-based health cash plan provider
Medicash, polled 2,000 full- and part-time workers.
Two Department of Labor rules that kicked into gear this year require plan providers
and companies that sponsor plans to open the books on plan fees and investment costs to the country's 72 million participants in 401(k) plans.
Both factors are further fueling the shift to passive solutions and as a result, plan providers
are increasing the number of index fund options available to plan sponsors as a means of managing total plan expenses.
Health care employers are relying more on retirement plan providers
to administer their plans, a survey of nearly 200 health care plan sponsors found.
"With DB plans waning and Social Security in jeopardy, DC and IRA plan providers
must create and implement better strategies to generate reliable income for America's next generation of retirees."