Despite also having to cope with fiduciary and administrative responsibilities, retirement plan sponsors are setting their sights on participant education as their top priority.
That’s according to a OneAmerica poll, which finds that fiduciary responsibilities (57 percent) and administrative tasks (45 percent) were high on the list of plan sponsors’ top concerns.
But the top priority for 69 percent is “providing participation education,” followed by improving participation rates, at 67 percent.
While they’re most concerned over participant education—some feel that their advisors are just doing the bare minimum, instead of really making sure that participants are learning about investing and how their plans work—those aren’t the only concerns sponsors have, according to a Forbes report.
Advisors who don’t look into participation rates, for example, and take on the challenge of getting more workers to sign on—or who don’t allay the fears of participants who don’t understand how to use their plans and are maybe even more than a little afraid of it—may not seem to sponsors as if they’re putting much effort into the plan.
And getting back to those other two challenges—fiduciary and administrative responsibilities—60 percent of sponsors who know about the DOL fiduciary rule say it’s important that advisors should be willing to take on their plans’ fiduciary responsibilities.
And considering that the lack of thorough service by plan advisors of 401(k)s is sufficiently disturbing to plan sponsors that, according to a 2017 article by the National Association of Plan Advisors, 38 percent of sponsors are looking to switch advisors—up from 30 percent in 2016 and 9 percent in 2013—advisors need to keep on top of what’s happening with their plan sponsor clients.
One thing that might help sponsors keep on top of their own concerns is the pair of calendars released by Segal Group. The 2018 Reporting & Disclosure Calendars summarize the annual compliance requirements and disclosure obligations that health and retirement plan sponsors need to know.
They also remind those in charge to check for such plan pitfalls as discrimination, keep up with the changes surrounding the Affordable Care Act and consider the actions taken by Congress and federal agencies to help sponsors, plans and employees in the wake of last year’s natural disasters.
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