GA December 2021 Newsletter

  • VOLUME L| NUMBER XLVII | December 2021

    • Cybersecurity Best Practices for Plan Sponsors

      Participant data and financial accounts comprise some of the most sensitive and potentially vulnerable information under a company’s care. These highly valuable assets can be an attractive target for cybercriminals and therefore present considerable security risk. Breaches to this information can be devastating to plan participants and to the reputation of the organization. For plan sponsors, ensuring protections around participant data and investment assets is a key fiduciary responsibility. In fact, as law firm Hodgson Russ noted recently, “The causation standard under Section 409(a) of ERISA is an issue that could lead to more litigation as cyberattacks on employee benefit plans increase.” The provision states that plan fiduciaries who breach their fiduciary responsibilities are personally liable for any losses that result from the breach. The...

       

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    • Retirement Income Participant Interest Surveys: A Contrarian View

      Retirement income products can serve an important purpose as a participant investment option for retirement plans. Surveys gauging participant interest in these options may be open to interpretation, especially when the survey is conducted by a retirement income vendor. A survey conducted by the well-known and respected JP Morgan gauged participant interest for a retirement income product that could be meaningful to many retirement plan participants. Retirement income vendors have increased marketing efforts for their retirement income product bolstered in part by employee surveys affirming interest. It is prudent for plan sponsors to look critically at survey conclusions when evaluating potential benefits of any new product for your retirement plan participants. The JP Morgan survey conclusions are similar to those of others.1 1. “There is...

       

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    • When It Comes to Planning for Retirement, Participants Want to Hit the Easy Button

      According to J.P. Morgan’s 2021 Defined Contribution Plan Participant Survey findings, more than half of the 1,281 respondents indicate that they: • Are presented with more plan information than they can absorb. • Don’t read investment information provided to them. • Are willing to spend time planning for retirement but just don’t know where to start. Nearly three-fourths of participants under 30 think employers should provide access to financial professionals and coaching to help them. Even more telling, 62% wish they could push an “easy button” and completely turn over retirement planning to someone else. This figure is up from 55% in 2016. What’s fueling these worrisome trends? Perhaps the added complexity of living during a global pandemic has left workers less time and energy...

       

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    • Participant Memo: December 2021 – Time for a Financial Check Up

      Now that 2021 is coming to a close, you may want to take into account life changes that may affect your financial goals.

       

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