PLANADVISER - July/August 2022 - 24
plan design / modeling
Previewing Plan Features
U
.S. employers continue to seek improvements to their
defined contribution plan designs. According to a
February WTW survey, 75% of DC plan sponsors had
made a change to their plan beyond swapping out a fund in
the previous two years and expected to make at least one
more change over the next two years. Twenty-eight percent
expected to adjust their plan's automatic deferral features,
and 38% intended to adopt an innovative contribution
strategy. Other possible changes such as allowing employees
to use their contributions to pay down student loans or to
build emergency savings are also being considered.
The motivation to make plan design changes can come
from either the adviser or the sponsor.
Shannon Maloney, managing director with Strategic
Retirement Partners in Northville, Michigan, says, 95%
of the time,
it is her firm initiating discussions with the
sponsor over potential changes.
In contrast, Neal Stamper, corporate retirement director
with Morgan Stanley's Graystone Consulting in Atlanta,
says sponsors frequently provide the initial idea by telling
their plan adviser what challenges they are experiencing
A tryout for the client removes any mystery before implementation
and what problems they are trying to solve. " When we have
a clear understanding of the client's needs, we can bring
options that fit with what the client is trying to accomplish, "
Stamper says. " That's what I see most often. "
Design Changes Being Considered
Stamper says he is seeing increased interest in student
loan repayment programs and how companies can help
their workforce in that area. He says, as companies see the
success of features such as automatic enrollment and automatic
escalation, which have helped participants get more
involved with their benefits, those employers see the potential
of other benefits such as student loan repayment.
Comparing the client with its industry peers can bring to
light new features that could be added to the plan, Maloney
says. She cites the possibility of adding a Roth option to a
plan, offering in-plan Roth conversions and auto-enrolling
employees into the Roth option. The sponsor would then need
to consider what parts of the workforce it will auto-enroll-
all participants, or just new employees? she says, noting that
the same question applies to auto-escalation provisions.
24 | planadviser.com July-August 2022 Art by Spencer Ashley
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PLANADVISER - July/August 2022
Table of Contents for the Digital Edition of PLANADVISER - July/August 2022
Balancing Act
Greater Access
Previewing Plan Features
A Different Way to Save
Next-Level Options
New Territory for Income?
Compliance for Wealth Managers
If Caught Off Guard by A Failure
Larry E. Crocker
PLANADVISER - July/August 2022 - C1
PLANADVISER - July/August 2022 - FC1
PLANADVISER - July/August 2022 - FC2
PLANADVISER - July/August 2022 - C2
PLANADVISER - July/August 2022 - 1
PLANADVISER - July/August 2022 - 2
PLANADVISER - July/August 2022 - 3
PLANADVISER - July/August 2022 - 4
PLANADVISER - July/August 2022 - 5
PLANADVISER - July/August 2022 - 6
PLANADVISER - July/August 2022 - 7
PLANADVISER - July/August 2022 - 8
PLANADVISER - July/August 2022 - 9
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PLANADVISER - July/August 2022 - 11
PLANADVISER - July/August 2022 - 12
PLANADVISER - July/August 2022 - 13
PLANADVISER - July/August 2022 - 14
PLANADVISER - July/August 2022 - 15
PLANADVISER - July/August 2022 - Balancing Act
PLANADVISER - July/August 2022 - 17
PLANADVISER - July/August 2022 - 18
PLANADVISER - July/August 2022 - 19
PLANADVISER - July/August 2022 - Greater Access
PLANADVISER - July/August 2022 - 21
PLANADVISER - July/August 2022 - 22
PLANADVISER - July/August 2022 - 23
PLANADVISER - July/August 2022 - Previewing Plan Features
PLANADVISER - July/August 2022 - 25
PLANADVISER - July/August 2022 - 26
PLANADVISER - July/August 2022 - 27
PLANADVISER - July/August 2022 - A Different Way to Save
PLANADVISER - July/August 2022 - 29
PLANADVISER - July/August 2022 - 30
PLANADVISER - July/August 2022 - 31
PLANADVISER - July/August 2022 - Next-Level Options
PLANADVISER - July/August 2022 - 33
PLANADVISER - July/August 2022 - 34
PLANADVISER - July/August 2022 - 35
PLANADVISER - July/August 2022 - New Territory for Income?
PLANADVISER - July/August 2022 - 37
PLANADVISER - July/August 2022 - Compliance for Wealth Managers
PLANADVISER - July/August 2022 - If Caught Off Guard by A Failure
PLANADVISER - July/August 2022 - Larry E. Crocker
PLANADVISER - July/August 2022 - Cover3
PLANADVISER - July/August 2022 - Cover4
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