How to Best Protect Workers’ Retirement Savings
PLANSPONSOR and PLANADVISER
Benefits and executive compensation partner Brad Campbell authored an article for PLANSPONSOR and PLANADVISER about how plan sponsors can utilize 401(k) loan insurance to maximize the power of automatic portability, protect workers’ savings and improve participant outcomes.
Campbell explained that several large recordkeepers are joining forces and implementing automatic portability as a new option for plan sponsors to use with smaller account balances that otherwise get left behind. He also noted that to fully achieve the goals of automatic portability, its implementation should consider how to address the reality that many affected workers also have outstanding loans from their 401(k) plans.
Campbell said that retirement plan fiduciaries, advisers and service providers should consider comprehensive plan designs that benefit workers in both good and bad times. He added that evaluating the sensibility and prudence of implementing new financial wellness capabilities, such as automatic portability and 401(k) loan insurance, should be a top priority.