PLANADVISER - July/August 2018 - 6

intro
Best Interest in Mind
N
ow that the U.S. 5th Circuit Court of Appeals
has vacated the Department of Labor
(DOL)'s revised fiduciary rule, we thought
Winning Strategies for Retirement Plan Advisers
o
July-August 2018 | planadviser.com | $30
2018 R ecordkeeping Services Guide
it would be important to explore plan sponsors'
expectations of how, going forward, retirement
plan advisers will advise on whether to roll money
out of a defined contribution (DC) plan into an individual
retirement account (IRA) or keep it in the
plan. Not surprisingly, " The Roll of the Adviser "
(page 24) found that many sponsors, particularly
large ones, will likely scrutinize whether advisers
are keeping participants' best interests in mind.
While sponsors and participants may benefit from
the economics of keeping retirees' assets in the
plan, especially when it comes to negotiating fees, there can be a downside for
the plan sponsor. For one thing, there's the difficulty of reaching retirees who
have since moved or divorced. Further, sources question whether a sponsor that
encourages retirees to remain in the plan has an obligation to offer systematic
withdrawals and/or retirement income options.
Our annual PLANADVISER Recordkeeper Services Guide (formerly RecordTHEROLL
OF
THE ADVISER
keeping Survey) (page 30) gives a snapshot of the overall recordkeeping
industry, as well as details on providers to show how these vendors work with
advisers. The accompanying story, " Keeping Up with the Intermediaries, "
discusses how recordkeepers are spending more time and resources on data
analytics to make specific recommendations to plan sponsors on how to tailor
plan design and participant communications. Also, many of the tools they
offer, such as calculators, are now more intuitive, built with algorithms.
" Stretching the Match " (page 48) reveals that, while only 30.3% of defined
contribution plan sponsors use a stretch match, it can be a very effective way
to motivate workers to save more, because they view that target as a recommendation
on how much they should be saving. But if a sponsor does turn to
a stretch match, it's important to educate participants on how it works. Additionally,
the stretch match formulas can be paired with automatic enrollment
and automatic deferral escalation to get participants to save to the match
amount or beyond.
" Speaking Their Language " (page 44) examines the different sets of issues
that resonate with Millennials, Generation X and Baby Boomers, respectively.
Many Millennials are saddled with student loan debt and need help budgeting;
having entered the work force when the Great Recession gripped the country,
they are risk-averse and need coaching to achieve the appropriate asset allocations.
Gen Xers may be caring for aging parents and struggling to save for
their children's college education, both of which efforts could trip them up
when it comes to retirement saving; advisers need to remind them of the
importance of that. Boomers need help with decumulation.
Other articles in this issue feature the topics of student loan debt relief
and managed accounts. " Giving Them a Break " (page 50) reveals how student
loan debt relief programs can help get workers into a retirement plan many
years earlier than they would have joined one otherwise. " Managed Accounts'
Value " (page 52) examines who are the best candidates for these vehicles, how
they can be set up to work the best, and what advisers should consider when
selecting a managed account for a sponsor.
We would love to hear your feedback on these stories-and to hear from
you on topics you would like us to cover. -Lee Barney, Managing Editor
editor-in-chief: Alison Cooke Mintzer
Alison.Mintzer@strategic-i.com
creative director: SooJin Chun Buzelli, svp
SooJin.Buzelli@strategic-i.com
managing editor: Lee Barney
Lee.Barney@strategic-i.com
deputy editor, planadviser.com: John Manganaro
John.Manganaro@strategic-i.com
editorial staff: Judy Faust Hartnett, Rebecca Moore,
Amanda Umpierrez, Karen Wittwer
contributors: John Keefe, Judy Ward
surveys & research: Quinn Keeler, svp;
Brian O'Keefe, Jackie Scott
design & production: Lynn Connelly, Chris Kwon,
Claire Merchlinsky, Tiffany Pai, Micky Walls
design contributor: Cherese Rambaldi
art contributors: Cate Andrews, Melinda Beck,
Tim Bower, David Huang, Lars Leetaru, Clarissa Liu,
Sarah Mazzetti, Suharu Ogawa, Brian Rea, Red Nose
Studio (cover), Dadu Shin, Jillian Tamaki
head of media sales: Katie Bacon, vp
Katie.Bacon@strategic-i.com
online & digital products: Paul Zampitella, vp
Paul.Zampitella@strategic-i.com
advertising sales: Meighan McGowan, Bill Murray,
Lisa Reilly
global sales administrator: Anthony Groccia
conferences: Carol Popkins, vp;
Katie Campbell, Ana-Alyse Castelluccio,
Melissa Groccia, Lucille Velander
global controller: Younes Ismael-Aguirre
accounting operations: Abeer Abu-Issa, Mayrillane
Bahi, Ruth Fissaha, Doreen Fucci, Kristin Keeler,
Ricky Kostik, Karen Kurtz, Vivian Panton,
Harris Weinstein
chief technology officer: Phil Herzog
development director: Justin Hoffman
technology operations: Stephen Dennis, Ray Lucibello,
Bhakti Patel, Jigar Patel, Dexter Reaves,
Stephen Widom
custom media program manager: Drew Donaldson,
Drew.Donaldson@strategic-i.com
reprints: Michelle Judkins 203-595-3276
Michelle.Judkins@strategic-i.com
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chief executive officer: Joel Mandelbaum
chief financial officer: Karl Jaeger
chief content officer: Tony White
PLANADVISER (ISSN 1935-9098) is published
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reproduction policy PLANADVISER, Volume 12, Issue
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Copyright. com ©2018. Entire contents copyrighted.
6 | planadviser.com july-august 2018
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PLANADVISER - July/August 2018

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