PLANADVISER - July/August 2020 - 2

publisher's note //
publisher: Alison Cooke Mintzer
Alison.Mintzer@issmediasolutions.com
creative director: SooJin Chun Buzelli
SooJin.Buzelli@issmediasolutions.com
managing editor: Judy Faust Hartnett
Judy.FaustHartnett@issmediasolutions.com
managing editor, planadviser.com:
John Manganaro
John.Manganaro@issmediasolutions.com
editorial staff: Lee Barney, Rebecca Moore,
Michele Theodore, Amanda Umpierrez,
Karen Wittwer
A Team Approach
OUR RESEARCH TEAM recently completed our annual PLANSPONSOR
Recordkeeping Survey, in which we quantitatively
report about recordkeepers' products and services, as well
as their total assets and overall client demographics. This
research continues to turn up in industry-leading data about
the provider marketplace. I still get a kick out of seeing it
footnoted on TV commercials or in mainstream print ads
when a provider states it is the biggest or has the most plans.
Each new set of findings causes me to reflect on the role of the recordkeeper in
the industry-and the tough position such providers are in. That's partially because
each year the list is smaller, reflecting the stark reality of the recordkeeping business:
It's hard to be profitable, so mergers and acquisitions (M&As) are a constant.
This year feels different because of the current economic environment and the
rushed but crucial work recordkeepers had to do this spring to comply with the
Coronavirus Aid, Relief and Economic Security (CARES) Act. As one adviser said to
me, " Usually retirement plan legislation takes forever, but with CARES, it was bam,
here it is! " Suddenly, providers, advisers, sponsors and everyone else had to know
how to respond and implement the provisions across their platforms and plans.
Each recordkeeper made choices about how to implement those changes
and then explain them to advisers and plan sponsors. Some offered an opt-in
approach for sponsors to amend their plan design, while others went the opt-out
route, defaulting all plans into the provisions unless the sponsor opted out. Not
everyone I've spoken to liked their recordkeeper's choice. Still, what other options
did providers have, when the last thing on many clients' minds was amending
their plan-trying instead to keep the lights on and employees paid?
Due to the timing of this year's data collection, we could ask how recordkeepers
managed the CARES provision processes. It's notable that, of the 48 that
answered questions about CARES Act provision implementations, most allowed
for the client to decide which retirement distribution provisions to adopt; only
two reported offering a choice of all or none. Also, most-29-providers surveyed
chose the opt-in method, so if clients took no action, nothing was amended. And 28
had no deadline for plan sponsors to respond; this gave both sponsors and advisers
a chance to think their choices through.
To me, that shows providers acting as a partner, a role in which many envision
themselves-but not that all advisers embrace. Whatever approach plan
providers took, it opened a door for advisers to step through and be that trusted
counsel for sponsor clients as they determined what was best for their plan.
To meet clients' broader needs as this pandemic, and all of the uncertainties,
continue, many of you may need support as well.
Whatever happens, retirement plan sponsors and employees/participants
will need to turn to experts as they grapple with their finances, whether that's
managing hardship withdrawals or seeking to learn how to increase savings or set
up emergency funds. For advisers trying to scale up their business and support
clients, the recordkeepers can be integral to the success of clients' plans. They have
services and support to assist you in these difficult conversations as you help your
sponsors make decisions affecting their benefits programs through the rest of 2020
and into 2021. Consider adding them to your key partner list, if you haven't already.
-Alison Cooke Mintzer, Publisher, PLANADVISER
contributors: Beth Braverman, John Keefe,
Judy Ward
surveys & research: Brian O'Keefe;
Angela Marinakis, Jackie Scott
design & production: Donna Bien-Aimé,
Alanna Jacobs, Joy Liu, Linda Liu
design contributor: Cherese Rambaldi
art contributors: Niv Bavarsky,
Adriana Bellet, Tim Bower, Andrea
D'Aquino, Jackie Ferrentino, Eric Hanson,
Celia Jacobs (cover), Claudi Kessels,
Lily Padula, Sonia Pulido, Erick M. Ramos
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Robert.Reif@issmediasolutions.com
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McGowan, Bill Murray
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cfo: Allen Heery
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PLANADVISER - July/August 2020

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