Keeping 401K participants on track during COVID-19
Retirement plan fiduciaries play an important role in the administration of defined contribution (DC) retirement plans. When DC plans replaced pension plans a generation ago, employees took on the burden of knowing how much to save during their working years to generate the income they’d need in retirement. Fiduciaries ensure those plan participants are provided with the right mix of investments, plan features and education to allow that to happen.
So it comes as no surprise when plan sponsors report their top retirement plan concern during the current pandemic is, “Keeping participants on track with saving and investing.” When it comes to retirement plans, safety nets are often in short supply. Some employers will “step up” vesting of employer contributions in the case of an involuntary dismissal. But there’s more they can do. They can protect retirement plan loans.
Read the BenefitsPRO article by George White, Custodia Financial’s Chief Operating Officer.