Many employers searching for cost savings in the midst of the COVID-19 pandemic naturally have begun scrutinizing their contributions to benefits, such as retirement plans. The rules for making changes to retirement plan terms—and permit reductions in employer contributions—are complex, but new guidance temporarily permits you to reduce or suspend safe harbor contributions midyear.
Recent federal agency guidance includes important information and extensions of various deadlines affecting employee benefit plans to include extensions of continuation coverage notice and election periods under COBRA.
This year’s college graduates are among the luckiest yet—unemployment is at its lowest rate since 1969, and employers plan to hire 11% more graduates, with higher salaries, from the class of 2019 than the class of 2018.
The U.S. economy is the strongest it’s been in decades, but American small business employees are facing a dilemma when it comes to saving for their futures.
The use of 401(k) plan loans in 2018 fell to a 9-year low of 22.5% of participants and continued a steady 6-year decline of nearly 10 percentage points, investment management firm T. Rowe Price said on May 1, drawing on data gathered from nearly 2 million participants for its annual benchmarking report.
Many 401(k) plan sponsors seek to reduce their potential fiduciary liability by electing to be a Section 404(c) plan. Under Employee Retirement Income Security Act (ERISA) Section 404(c), a fiduciary is not liable for losses in the plan resulting from the participant’s selection of investments in his or her own account, provided that the participant […]
I recently sat down with Chris Whitlow, the CEO of Edukate to talk about the 401(k). As many of you know, employers are knee-deep in annual reenrollments. This includes getting people to think about their investments, says Whitlow.
2017 saw job satisfaction among U.S. employees fall. However, the American workforce might be out of its funk! According to new research, there is strong evidence that both workers and their employers have renewed feelings of workplace optimism and satisfaction.
In a recent Private Letter Ruling (PLR), the Internal Revenue Service (IRS) authorized making 401(k) plan contributions to participants who repay their student loans instead of contributing to the plan. (See related August story.)
Average student loan balances across the country continue to rise, which leaves many new employees struggling with debt before they’ve even managed to start their first full-time role. This weighs heavily on the minds of many job applicants and is one of the reasons some employers have started offering student loan assistance as a benefit […]