GA May 2021 Newsletter

  • VOLUME XLIII | NUMBER XL | May 2021

    • ERISA Definitions and Financial Designations and What They Mean for Plan Sponsors

      Plan sponsors and retirement plan committees are likely to encounter a myriad of industry-related naming devices and designations. It is important that they understand what each means in terms of definition, background, and practical impact/importance to the plan, the plan’s fiduciaries, and the plan’s participants. ERISA Definitions For instance, a number of ERISA sections are commonly used by plan service providers. ERISA stands for the Employee Retirement Income Security Act of 1974 and provides not only the rules that govern, in part, retirement plans, but definitions as well. The following definitions are commonly used by service providers within the industry: ERISA Section 3(21) Fiduciary Advisor A 3(21) investment fiduciary is a paid professional who provides investment recommendations to the plan sponsor/trustee or plan participant, alternate...

       

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    • WFH (Wellness From Home) Challenges Both Participants and Plan Sponsors

      COVID-19 has posed a dual set of related challenges for plan sponsors and participants. For employees, the pandemic has pitted more immediate financial needs against prioritizing planned savings — and shifted the traditional focus of employee-sponsored financial wellness programs from the future to the present. And sponsors face the difficulty of effectively engaging remote workers showing increased demand for financial wellness programs. Prudential’s 2020 Plan Sponsor Pulse Survey data shows 72% of sponsors reporting greater utilization, with 28% indicating a significant increase. With that in mind, plan sponsors can use several strategies to help weary workers engage with the organization’s financial wellness program — no matter where they are. Bite-size is better. Gear your educational content toward shorter, more focused personal finance topics. Modular programming...

       

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    • 5 Tactics to Increase Retirement Plan Participation

      Employees fail to enroll in their retirement plan for a variety of reasons. They may be intimidated if it’s their first time around or they might not fully understand and appreciate the benefits (or the downside of not participating). Some could be concerned about “locking up” their money — and others might worry so much about making the “wrong” investment decision that they procrastinate making any decision at all. As a plan sponsor, you know the advantages of offering a retirement plan for you, including: employee recruitment, increased retention, reduced worker stress, higher productivity and tax benefits. Higher participation and contribution rates can also reduce the chance the plan will fail discrimination testing and be subject to financial consequences if needed corrections aren’t made on...

       

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    • Participant Memo: May 2021 – What’s an HSA and is it Right for You?

      Health savings accounts (HSAs) have grown tremendously in popularity over the past few years. You’ve probably heard of them or maybe your employer offers one. This memo will uncover answers to common questions you may have about HSAs.

       

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