Summer 2011
Tell Us How We're Doing
Harley Spring, VP Retirement Plan Services, tells the story of how one employee turned a difficult situation into exceptional customer service and invites everyone to share their own experiences via our quick survey link. Your feedback will help us ensure our service is always on target.
continueInvesting In The Future Of Retirement Plans
The Standard is constantly working to make the support we provide to our plan sponsors and participants even better. We're excited to share some improvements currently underway that further simplify plan administration and enhance the tools we provide to help participants reach their retirement goals.
Read on for an overview of what has been completed to date and a preview of the projects scheduled for completion later this year or in early 2012.
continueAutomatic Enrollment Raises Participation Rate
A new poll1 of plan sponsors found that companies offering automatic enrollment raised their participation rate by nearly 30 percent above pre-automatic-enrollment rates, and that participants enrolled automatically had a favorable view of this enrollment method.
continueRetirement Confidence Reaches Record Low
The Employee Benefit Research Institute's (EBRI) 2011 Retirement Confidence Survey found that the percentage of workers "not at all" confident about having enough money for a comfortable retirement rose to 27 percent, the highest level in the 21 years of this survey. The number of those who are "very" confident dropped to 13 percent.
continuePlan Sponsors Ask...
Q. We are starting to hear discussions of "income replacement solutions." What are they?
Q. Have Americans' attitude toward 401(k) plans changed due to market and economic volatility in recent years?
Q. Is the Department of Labor expected to issue a safe harbor rule for large plans with regard to timely deposit of participant contributions, as they did last year for small plans?
Discover our answers to these questions.
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The Mainspring in Motion quarterly newsletter for retirement plan sponsors features market commentary, regulatory and legislative updates, product enhancement announcements and articles on retirement readiness, savings, participant behavior and improving plan effectiveness.
New and Improved Participant Account Statements Are Coming Soon!
In order to give your retirement plan participants a more useful summary of their plan account activity, we are changing the look and flow of the information. Check out a sample of the newly enhanced statement. We refreshed the statement by putting clear summary account information on the first page, so participants will find critical information at a glance. It's simple, straightforward and participants will continue to receive the same detailed information they're used to seeing.
Plan Sponsor's Quarterly Calendar
Consult your plan's counsel or tax advisor regarding these and other items that may apply to your plan.
July
- Conduct a review of second quarter payroll and plan deposit dates to ensure compliance with the Department of Labor's rules for timely deposit of participant contributions and loan repayments.
- Verify that employees who became eligible for the plan between April 1 and June 30 received and returned an enrollment form. Follow up for forms that were not returned.
- Ensure that the plan's Form 5500 is submitted by July 31, unless an extension of time to file applies. (calendar–year plans)
August
- Begin preparing for the distribution of the plan's Summary Annual Report to participants and beneficiaries by September 30, unless a Form 5500 extension of time to file applies. (calendar–year plans)
- Submit employee census and payroll data to the plan's recordkeeper for mid-year compliance testing. (calendar–year plans)
- Confirm that participants who terminated employment between January 1 and June 30 elected a distribution option for their plan account balance and returned their election form. Contact those whose forms were not received.
September
- Send a reminder memo or e-mail to all employees to encourage them to review and update, if necessary, their beneficiary designations for all benefit plans.
- Begin preparing the applicable safe harbor notices to employees, and plan for distribution of the notices between October 2 and December 2. (calendar–year plans)
- Distribute the plan's Summary Annual Report by September 30 to participants and beneficiaries, unless an extension of time to file Form 5500 applies. (calendar–year plans)
