Talking Points
Loan Limit Countdown
With changes made under the 2018 Bipartisan Budget Act, sponsors may still set limits on plan loans and hardship withdrawals until December 31, 2020.
Increased Wage Moments
Three-quarters of 1,000 employees who make under $60,000 a year said, if their employer offered savings options when it gave a raise, they’d be less stressed and more confident about their finances.
Small Businesses See Many Possibilities in Offering ‘Open’ MEPs
According to a recent survey, 66% of 304 small businesses currently not offering a retirement plan said they would do so through an open multiple employer plan (MEP).
Asked why they would consider offering an open MEP:
| It’s the right thing to do | 63% |
| To attract the most talented employees | 59% |
| To retain employees | 59% |
| To offer a benefit that most small businesses do not offer | 48% |
| To be able to hire in a tight job market | 37% |
Asked what they view as the positive components of an open MEP:
| Lower costs for their organization | 55% |
| Lower costs for their workers | 54% |
| A variety of fund options | 49% |
| The help of financial professionals | 49% |
| Lower liability risk for their organization | 47% |
| Administrative support for their benefits staff | 39% |
| Fiduciary support | 43% |
| Protections under ERISA for all employees | 30% |
The Experience of States That Closed DB Plans
Switching from a defined benefit pension plan to a defined contribution or cash balance plan didn’t address existing pension underfunding, as promised. Instead, costs for four states analyzed increased after the pension plan closed.
Distribution Options on the Rise
Employers increasingly are expanding distribution options in their DC plans to help employees with draw-down strategies in retirement.