DC plans

The next step in the ongoing modernization of the retirement vehicle involves adopting plan features which encourage seamless savings portability and consolidation.

Plan sponsors should inquire about their adviser’s compensation, professional credentials and educational background, says retirement expert Robert Lawton.

Employers should concentrate on adopting measures that enable seamless plan-to-plan savings portability for participants, especially for employee accounts with less than $5,000.

Advisers will find a powerful tool in communicating enhanced benefits from a defined contribution perspective that puts employee’s in the driver’s seat.

Employers should concentrate on adopting measures that enable seamless plan-to-plan savings portability for participants, especially for employee accounts with less than $5,000.

Plan sponsors should connect with workers by integrating financial wellness concepts, including behavioral finance/economics elements, talking about loans and withdrawals and offering one-on-one meetings.

Plan sponsors should connect with workers by integrating financial wellness concepts, including behavioral finance/economics elements, talking about loans and withdrawals and offering one-on-one meetings.

Employers should auto-enroll employees, offer health savings accounts and provide financial education online.

Using lowest-cost share classes, performing an annual investment fund review and distributing required fee notices are among best practices.

Plan sponsors worry record keepers will follow suit, limiting the investment options employers are able to offer employees through their workplace 401(k) plans.