Ted Godbout

Are Pre-Retirees Worrying Too Much About Retirement?

By Ted Godbout 2/13/2019

Retirees’ concerns about not having enough money to last through retirement may not be as grim as they had feared before retiring, according to a new study. In fact, more than two-thirds of retirees say they live as well or better in retirement as they did when they were working, according to the... READ MORE

Fee Allocation: Some Things to Consider

By Ted Godbout 2/11/2019

Fee litigation trends and disclosure requirements have compelled plan sponsors to focus on how recordkeeping fees are allocated to participants, but beyond ERISA’s general fiduciary requirements, there is limited legal guidance, explains a new white paper. Under the Department of Labor’s fee... READ MORE

RESA, Open MEPs at Forefront of House Retirement Security Hearing

By Ted Godbout 2/7/2019

At the first hearing on retirement security issues in the 116th Congress on Feb. 6, enactment of the Retirement Enhancement and Savings Act (RESA) again took center stage as a vital step in expanding access and addressing the coverage gap. Featuring a single panel of witnesses, the four-hour... READ MORE

Bipartisan Senate Legislation Would Boost SIMPLE Plans

By Ted Godbout 2/6/2019

Two key senators reintroduced legislation to provide greater flexibility for small businesses interested in offering SIMPLE plans as an option for saving for retirement. Introduced Feb. 4 by Sens. Susan Collins (R-ME) and Mark Warner (D-VA), the SIMPLE Plan Modernization Act (S. 322) would, among... READ MORE

Financial Wellness Programs Take Center Stage with Employers

By Ted Godbout 2/4/2019

Five years ago, employers were just starting to provide workers with financial benefits beyond their retirement plan, but now financial wellness appears to be firmly entrenched in the benefits space, according to a recent report. Nearly two-thirds of employers say they are very likely to take... READ MORE

Market Shake-up Drove 401(k) Balances Down, But Not All Was Bad

By Ted Godbout 2/4/2019

Fourth quarter volatility pushed average 401(k) account balances down from earlier record highs, but investors apparently didn’t panic, data from Fidelity Investment indicates. The firm notes in its quarterly analysis of retirement savings trends that the average 401(k) balance experienced a 10%... READ MORE

Ways & Means Sets Sights on Retirement Security Reform

By Ted Godbout 1/31/2019

House Ways & Means Committee Chairman Richie Neal (D-MA) announced Jan. 30 that the committee will hold a hearing on Feb. 6 on improving retirement security for America’s workers. It is anticipated that the hearing will be the first of many focusing on retirement security issues, eventually... READ MORE

Litigation Concerns Continue to Hamper 401(k) Plan Innovation

By Ted Godbout 1/29/2019

The threat of being sued continues to dominate plan sponsor reluctance of being too innovative with their defined contribution plans, a recent study finds. According to Alight Solution’s 2019 Hot Topics in Retirement and Financial Wellbeing report, “Building on the past, working toward the future... READ MORE

Do You Use the ‘KISS’ Method When Communicating with Plan Participants?

By Ted Godbout 1/25/2019

When it comes to participant communications, a new white paper suggests that some retirement plan terms have meanings that are completely out of step with the definitions most people associate with them. In “Boosting the effectiveness of retirement plan communications,” the Empower Institute... READ MORE

What Are Employers’ Top Concerns About Their 401(k) Plans?

By Ted Godbout 1/24/2019

Employer sentiment regarding the most important employee behavior within their 401(k) plan has changed quite drastically over the past 15 years and will likely change again, according to Alight Solutions. In 2005, interpreting new laws like the safe harbor for automatic rollovers and force-outs... READ MORE

Silver State Fiduciary Reg Skips Over ERISA Exemption

By Ted Godbout 1/22/2019

Nevada’s Office of the Secretary of State, Securities Division, on Jan. 18 released draft regulations defining the state’s new fiduciary standard based on legislation enacted by the state’s legislature in 2017 – the first of several states to do so. There does not appear to be an ERISA exemption,... READ MORE

New Financial Services Chair Plans Robust Oversight of Financial System

By Ted Godbout 1/17/2019

Rep. Maxine Waters (D-CA), the new chair of the House Financial Services Committee, recently outlined a full-bodied agenda that seeks to protect consumers, safeguard investors and prevent another financial crisis. In terms of setting the committee’s agenda, Waters, who has served on the committee... READ MORE

Market Volatility Creates Uptick in 401(k) Trading Activity

By Ted Godbout 1/15/2019

December’s market volatility capped off a year in which 401(k) investors started off flocking to equities, only to later flee them for fixed income. According to the Alight Solutions 401(k) Index, 2018 was an interesting year for trading activity among 401(k) investors, as 18 of the first 28... READ MORE

Debunking 7 Myths About Millennial Investing Habits

By Ted Godbout 1/11/2019

Some studies suggest that Millennials aren’t saving enough and lack confidence making investment decisions, while others suggest Millennials are aggressive, knowledgeable and confident when it comes to investing. So what’s the deal? It turns out that advisors may be taking the wrong approach in... READ MORE

Should a 401(k) Be Used to Buy a Deferred Income Annuity?

By Ted Godbout 1/9/2019

A new EBRI issue brief reviews whether and to what extent purchasing a qualified longevity annuity contract (QLAC) offered through a DC plan can help improve retirement readiness. In “Deferred Income Annuity Purchases: Optimal Levels for Retirement Income Adequacy,” the Employee Benefit Research... READ MORE

Is There an Accurate Way to Measure the Value of Financial Wellness?

By Ted Godbout 1/7/2019

Employers continue to show widespread interest in providing financial wellness programs to improve worker well-being and reduce financial stress, but there’s little agreement on what makes up a program and no clear way to measure its value, according to panelists at a recent policy forum. The... READ MORE

House Rule Changes Point to Gridlock During 116th Congress

By Ted Godbout 1/7/2019

While much of Washington has been focused on the government shutdown, House Democrats kicked off the 116th Congress by implementing a series of changes to the standing rules that will will make it harder for Congress and President Trump to agree on major legislation. Perhaps one of the more... READ MORE

Retirees Wish They Had Prepared Better for Retirement

By Ted Godbout 1/2/2019

New survey results paint a bleak picture of the current state of affairs for retirees, as many wish they were more proactive in saving more and starting sooner. When looking back on their retirement preparations, nearly three out of four retirees (73%) agree they should have saved more on a... READ MORE

E-Delivery Bill’s Introduction in the Senate Sets the Stage for 2019 Action

By Ted Godbout 12/27/2018

Bipartisan legislation to allow plan sponsors to use e-delivery as the default distribution method for ERISA required retirement plan documents was reintroduced in the Senate in the waning days of the 115th Congress. The Receiving Electronic Statements to Improve Retiree Earnings (RETIRE) Act (S.... READ MORE

Portman, Cardin Introduce Sweeping Retirement Reform Legislation

By Ted Godbout 12/20/2018

In the waning days of the 115th Congress, the bipartisan duo of Sens. Rob Portman (R-OH) and Ben Cardin (D-MD) unveiled one of the most comprehensive pieces of retirement security legislation proposed in this congressional session. The 121-page “Retirement Security and Savings Act of 2018,” ... READ MORE

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