PLANSPONSOR

Are your employees taking advantage of rebalancing their retirement portfolios? Despite 70% of plan sponsors offering rebalancing, only 12% of participants opt in. Alight’s Rob Austin spoke with PLANSPONSOR on how investors should manage portfolios based on market fluctuations, and how employers can drive more engagement. https://alig.ht/Z2GH50Vlukc

Are In-House Investment Options Putting Plan Sponsors at Risk? A new lawsuit against Lockheed Martin raises big questions about the use of proprietary target-date funds (TDFs) in retirement plans writes Remy Samuels in today's PLANSPONSOR. The plaintiffs argue that the company’s in-house TDFs underperformed and exposed participants to unnecessary risk—highlighting the growing scrutiny around fiduciary responsibility and the selection of investment options. This case is a timely reminder that transparency, performance, and alignment with participant interests matter more than ever in plan design and oversight. Are in-house funds delivering true value—or opening the door to potential liability? I’d welcome your thoughts—comment below and let’s discuss. https://lnkd.in/gtNn2XD9

New Social Security Rule Could Impact Millions—Are Your Clients Ready? Starting this summer, the Social Security Administration (SSA) will implement stricter identity verification protocols for anyone accessing sensitive information—requiring individuals to appear in person or use a new online portal with enhanced security. This is a significant shift designed to protect against fraud and identity theft, but it also creates potential friction for retirees, beneficiaries, and those assisting older clients with benefits planning. This PLANSPONSOR article provides additional details: https://lnkd.in/g4697B_h

Fiduciary risk continues to challenge the broader adoption of alternative investments in DC plans. NEPC’s Partner and Defined Contribution Team Leader Bill Ryan, MBA CAIA SPHR shares insights with PLANSPONSOR, noting that while private markets are gaining traction, 'ancillary things that are hangnails' can deter wider inclusion. Read full article here more: https://lnkd.in/eACg9J8U #DCPlans?

PLANSPONSOR's Remy Samuels offers an excellent "buyer beware" re the pros/cons.

Bridging the Gap Between Employer Intentions and Employee Financial Wellness A recent survey by FinFit reveals that while 94% of employers acknowledge their role in supporting employees' financial well-being, only 57% actively implement measures to assist. This disparity contributes to 66% of workers feeling they lack financial literacy and are far from achieving financial wellness. However, the study also highlights that employees who engage with financial wellness tools experience significant benefits, including reduced financial stress and improved financial decision-making. What steps can employers take to support their employees' financial health effectively? Judy Faust Hartnett in her article for PLANSPONSOR provides some suggestions. https://lnkd.in/gWDATnQw

Is Private Equity a Suitable Fit for Your 401(k) Plan? A recent study from Johns Hopkins Carey Business School raises critical questions about incorporating private equity investments into 401(k) plans. Remy Samuels writes in her article for PLANSPONSOR that the research highlights concerns regarding high fees, extended investment horizons, and potential liquidity issues associated with private equity funds. These factors may not align with the expectations and needs of typical 401(k) participants, who often seek transparency and liquidity in their retirement investments. I'm curious. How do you view the role of private equity in retirement planning? https://lnkd.in/g2qjzn2c

?? Are Private Equity Investments in 401ks a Risky Bet? ?? A recent The Johns Hopkins University - Carey Business School study is questioning whether private equity PE belongs in 401k plans—and the findings may surprise you. With high fees, long holding periods, and a lack of transparency, private equity funds could be exposing retirement savers to risks they never signed up for. ?? Key concerns: ?? PE funds often take 10-12 years to fully liquidate—meaning your money could be tied up for a decade or more ?? Many funds fail to outperform the stock market despite charging higher fees ?? Investors often commit without knowing the full returns of previous funds While some argue that long-term retirement savings align with PE’s longer investment horizons, the study raises serious fiduciary concerns for plan sponsors. ?? What does this mean for you? At Plootus, we help you understand what’s in your 401(k) and ensure your investments match your goals and risk tolerance. Don’t let hidden risks derail your financial future. Visit Plootus at www.plootus.com Or download our app from the Apple App store: https://lnkd.in/gkmUBfPN Follow us on LinkedIn - https://lnkd.in/exqGYmPb And subscribe to Plootus Weekly - https://lnkd.in/ervE-_sH #RetirementPlanning #401k #FinancialSecurity #Plootus https://lnkd.in/etebuV2A (PLANSPONSOR, Remy Samuels)