PLANADVISER - November/December 2019 - 4

intro
What's Next?
T
he history of participant-directed plans tells
us that most participants end up saving too
little for retirement and lack a solid underWinning
Strategies for Retirement Plan Advisers
November-December 2019 | planadviser.com | $30
2019
Practice Benchmarking
Survey
standing of investment options on the plan
menu. Automatic enrollment, automatic escalation
and qualified default investment alternatives
(QDIAs) were developed for employer plans,
given this behavior. There's another behavioral
topic gaining attention in the industry, and it's
a natural extension of the emphasis on financial
wellness. Advisers are beginning to work with
clients to encourage employees to save outside
the retirement plan. " Foul Weather Fund, " our
cover story by Judy Ward (page 18), addresses
three types of solutions for payroll deferral into emergency savings that, in
the end, will help participants avoid using retirement account funds to pay
for unexpected expenses.
Industry experts say developing a succession plan is one of the most imporFOUL
FUND
The
value of
facilitating
emergency
savings accounts
at the workplace
tant steps registered investment advisers (RIAs) can take. The pace of mergers
and acquisitions (M&As) in the retirement plan advisory space keeps this top of
mind in many practices. In " Employee-Owned " (page 42), an alternative succession
plan for advisory firms is discussed: selling the business to the employees
in the form of an employee stock ownership plan (ESOP). While some business
sectors with relatively high turnover may not make great ESOP candidates,
financial services firms such as RIAs can, says the National Center for
Employee Ownership (NCEO). John Manganaro profiles Ellwood Associates, a
Chicago advisory firm that has leveraged the ESOP structure.
Another topic in the succession-planning discussion is internal succession,
plus having financial advisers better reflect the participants they serve.
In " To Surmount the Gender Gap " (page 38), we focus on strategies for bringing
more women into the financial advisory business and for breaking old school
rules that women in this field fit best in operations.
Administration and compliance for nonqualified deferred compensation
(NQDC) plans are very different than for qualified retirement plans. Plan
sponsors new to these plans typically don't understand, for instance, that
benefits payable under an NQDC are a liability on their balance sheet; further,
if they informally finance their NQDC plan by purchasing some kind of asset,
this needs to be recorded on the balance sheet, as well. In Regulatory Radar
(page 40), Rebecca Moore reports on how plan advisers can help NQDC plan
sponsors administer these plans properly and stay in compliance.
Also of note in this issue is David Kaleda's timely column on " Cyberfraud "
(page 47). Two recent cases alleging breach of fiduciary duty under
the Employee Retirement Income Security Act (ERISA) in connection with the
distribution of participant account balances in defined contribution (DC) plans
highlight the compliance and litigation risks associated with plan losses. The
question is: Must a plan's security policies meet the duty of prudence?
Lastly, the much anticipated 2019 PLANADVISER Practice Benchmarking
Survey, introduced by the story " Built From the Ground Up " (page 24), is the
second part of our annual research on adviser attitudes and preferences. Retirement
plan advisers weigh in on the foundations of good practice management.
The staff of PLANADVISER wish you, our readers, a joyful holiday
season. We always look forward to receiving feedback. Write us at Editors@
issmediasolutions.com. -Judy Faust Hartnett, Managing Editor
editor-in-chief: Alison Cooke Mintzer
Alison.Mintzer@issmediasolutions.com
creative director: SooJin Chun Buzelli, svp
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,
Amanda Umpierrez, Karen Wittwer
contributors: John Keefe, Judy Ward
surveys & research: Brian O'Keefe, director; Jackie Scott
design & production: Donna Bien-Aimé, Alanna Jacobs,
Joy Liu, Linda Liu
design contributor: Cherese Rambaldi
art contributors: Wesley Allsbrook, Julie Benbassat,
Tim Bower, Sarah Cliff, Justin Klanke, Lars
Leetaru, Doris Liou, Meredith Miotke, Victo Ngai
(cover), Connor Robinson, Núria Tamarit, Franco
Zacharzewski
head of media sales: Katie Bacon, vp
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PLANADVISER - November/December 2019

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