Ready-2-Retire
asks investors questions in a simple manner that helps them establish goals,
set priorities and understand risks. No personal financial account information
is necessary to use the tool. When investors complete its questions,
Ready-2-Retire produces a personal retirement profile summarizing their desired
retirement lifestyle plan, their level of preparedness to minimize exposure to
various risks they may face in retirement and a list of next steps they may
wish to take in the planning process.
Investors of any
age can use Ready-2-Retire in their future planning, but the primary audience
is likely to be those nearing retirement age. With Ready-2-Retire, pre-retirees
can think through the activities they want to participate in, their preferred
living arrangements, and possible location changes, while also considering a
variety of risks retirees may face—including longevity, inflation, investment
and healthcare risks—and how they plan to address them.
Ready-2-Retire
was developed by LIMRA and licensed to T. Rowe Price.
By using this site you agree to our network wide Privacy Policy.
Understanding the New 403(b) Model Disclosure Form
One of the key reasons for the 403(b) Transparency
Taskforce’s new 403(b) model disclosure form is so vendors can show plan
sponsors that they offer more than just products, according to industry
experts.
Robert J. Toth Jr.,
Esq., Law Office of Robert J. Toth Jr., told attendees of the National Tax
Sheltered Accounts Association’s (NTSAA) 403(b) Advisor Summit that plan
sponsors will see the services vendors offer on the form. The U.S. Department
of Labor (DoL) is requiring vendors to provide fee disclosure to sponsors of
Employee Retirement Income Security Act (ERISA)-governed 403(b) plans
(see “DoL Issues Final Rule on Fee Disclosure”); the
Taskforce’s Model Disclosure Form is for sponsors of non-ERISA
plans.
Debra A. Davis,
ASPPA, said the form is just a suggestion for non-ERISA plans. The Taskforce
used the DoL’s disclosure rules to establish what should be disclosed by
non-ERISA plans.
According to
Davis, states and school districts are reconsidering their retirement plan
offerings. Some are considering a statewide 403(b) plan, which will result in
vendor consolidation. In addition, consultants are telling states to lower
fees. Davis said the Model Disclosure Form shows lawmakers that states don’t
have to move to a lower fee model; instead, they can inform participants and
let them choose.
If legislators
required disclosures to non-ERISA plans, that would give authority to the
Internal Revenue Service (IRS), which would look to the DoL regulations for
ERISA plans as guidance. The form is a way for the non-ERISA industry to set a
standard and regulate themselves before the government steps in, Davis
said.
Toth noted that
some vendors will automatically provide disclosures to non-ERISA plans, either
because they feel it is a best practice or because their system can’t
differentiate between ERISA and non-ERISA plans.
Davis said the
preference is to provide the information to participants before they make
investment decisions. For one thing, participants should be informed of any
contract surrender charges so they know what they are getting into.
Robert J. Toth Jr.,
Esq., Law Office of Robert J. Toth Jr., told attendees of the National Tax
Sheltered Accounts Association’s (NTSAA) 403(b) Advisor Summit that plan
sponsors will see the services vendors offer on the form. The U.S. Department
of Labor (DoL) is requiring vendors to provide fee disclosure to sponsors of
Employee Retirement Income Security Act (ERISA)-governed 403(b) plans
(see “DoL Issues Final Rule on Fee Disclosure”); the
Taskforce’s Model Disclosure Form is for sponsors of non-ERISA
plans.
Debra A. Davis,
ASPPA, said the form is just a suggestion for non-ERISA plans. The Taskforce
used the DoL’s disclosure rules to establish what should be disclosed by
non-ERISA plans.
According to
Davis, states and school districts are reconsidering their retirement plan
offerings. Some are considering a statewide 403(b) plan, which will result in
vendor consolidation. In addition, consultants are telling states to lower
fees. Davis said the Model Disclosure Form shows lawmakers that states don’t
have to move to a lower fee model; instead, they can inform participants and
let them choose.
If legislators
required disclosures to non-ERISA plans, that would give authority to the
Internal Revenue Service (IRS), which would look to the DoL regulations for
ERISA plans as guidance. The form is a way for the non-ERISA industry to set a
standard and regulate themselves before the government steps in, Davis
said.
Toth noted that
some vendors will automatically provide disclosures to non-ERISA plans, either
because they feel it is a best practice or because their system can’t
differentiate between ERISA and non-ERISA plans.
Davis said the
preference is to provide the information to participants before they make
investment decisions. For one thing, participants should be informed of any
contract surrender charges so they know what they are getting into.