As we head into 2020, below are five questions relating to current trends and topics which are expected to impact retirement plans, financial markets and savings next year: Will the 2019 U.S. equity rally continue into 2020 or will “fundamentals” take hold? After declining by…
…of course exceptions to every rule, but the first Pentegra Millennial Savings Survey conducted in 2017, while showing some surprisingly encouraging trends, also included some results that unfortunately back up the pervasive Millennial stereotype. To be fair, our findings did include some heartening signs. Over…
…to 8 to 11 times annual income). Key findings were: (a) more than 40 million working households (45%) have no retirement assets; (b) 80% of US households have savings less than one times their annual income; (c) only 55% of US private sector employees have…
…wage (where supply equals demand), there will be a surplus of workers and employers may have to cut back on hours and/or employees; and (b) if employers cannot pass on the higher costs to consumers, they may be forced to reduce employment. Minimum wage advocates…
…seriously considering a DB plan. But it’s time to take another look because, for smaller, more mature companies, DB plans can be a great vehicle to help employees prepare for retirement. You may be surprised to learn that they are actually a leading choice for…
One of the most effective ways to make your bank more incentive-driven is to offer company stock through your retirement plan. It gives your employees the opportunity to invest in ownership in your bank, creates a market for your stock and helps to maximize the…
…SPD and advise recipients that a paper copy of the SPD is also available upon request). The employee’s consent may be needed. (This depends on the employee’s job function and the availability of electronic access.) Paper versions of the SPD must be given to any…
…selection of one of these needs to reflect the age and income ranges of the employee population as well as the sophistication of the plan fiduciaries and availability of investment managers. Employees must also always be able to opt out of the the QDIA and…
…processes. Most employers prefer to make sure that their plan participants utilize their retirement savings plan properly to best take advantage of its features. This approach not only satisfies current and new employees, but also can be an attractive draw for potential employees. And not…
Understanding how forfeitures work in retirement plans When we talk about 401k type retirement plans we sometimes focus on the contributions made by employees that are ALWAYS immediately vested. In other words, it’s THEIR money and they can always withdraw it without forfeiting ANY-…
…plan, often matching employee contributions. Under ERISA, the employer must manage the plan and select investment types in the best interest of the employees participating in the plan. In a non-ERISA plan, the employee chooses the type of investment and usually will work directly with…
…bridges, highways, rail, airports and utilities. Increased Infrastructure spending has been endorsed by both presidential candidates and is expected to be front and center for fiscal policy going forward. The California Public Employees’ Retirement System (CalPERS) has invested $3 billion in both US and non-US…