PLANADVISER - September/October 2017 - 58
servicing strategies
Reharvesting
R
The case for re-enrollment to improve participant outcomes
e-enrollment is a plan design strategy that improves
employees' retirement outcomes by increasing participation
and deferral rates and/or improving investment
allocations. And yet, 89.3% of sponsors surveyed for
the 2016 PLANSPONSOR Defined Contribution (DC) Survey
said they had not re-enrolled any employees or participants
in the past 12 through 18 months. Among those that had,
1.9% re-enrolled participants not invested in the default
investment, 4% re-enrolled participants saving below the
default deferral
rate, and 8.6% re-enrolled nonparticipating
employees.
For many plan sponsors, re-enrollment remains a relatively
new concept, says Lynda Abend, chief data officer at
John Hancock Retirement Plan Services in Boston. " Automatic
enrollment
really started with the PPA [Pension
Protection Act], so it's about 10 years old. It took four or five
years before employers got comfortable with it, and then
most automatically enrolled new employees at 3%, " she says.
" In the past five years, we've made good progress in working
with plans that had auto-enrolled at 3%, [prompting them]
to move to a higher initial deferral, and getting sponsors
comfortable with auto-increases. Now, the next step in this
evolution is re-enrollment. "
Re-enrollment really only resonates among proactive
plan sponsors, says Jerry Patterson, senior vice president
of retirement and income solutions at Principal Financial
Group in Des Moines, Iowa. " If a plan sponsor cares about the
financial well-being of its work force, [it] should care about
this, " he says. " And if a plan sponsor cares about employees
transitioning into retirement in an orderly way, [it] should
care about this. "
Re-enrollment in its earliest form focused on reallocating
the balances of a plan's current participants to its qualified
default investment alternative (QDIA), says Cynthia
Pagliaro, senior research analyst at the Vanguard Center for
Investor Research in Valley Forge, Pennsylvania.
In a paper Vanguard released in March, " Re-enrollment:
One year later, " the firm presented a follow-up to a 2016 case
study of a large-plan client's investment-focused re-enrollment.
Over that year, diversification improved considerably,
58 | planadviser.com september-october 2017
Art by Tomi Um
http://www.planadviser.com
PLANADVISER - September/October 2017
Table of Contents for the Digital Edition of PLANADVISER - September/October 2017
Onboarding New Clients
2017 Retirement Plan Adviser Survey
A Focus on the TDK Market
Reharvesting
Annuities in DC Plans
Keeping Them Happy
Laden With Student Debt
When Advisers Tout Their Own Services
PLANADVISER - September/October 2017 - Cover1
PLANADVISER - September/October 2017 - Cover2
PLANADVISER - September/October 2017 - 1
PLANADVISER - September/October 2017 - 2
PLANADVISER - September/October 2017 - 3
PLANADVISER - September/October 2017 - 4
PLANADVISER - September/October 2017 - 5
PLANADVISER - September/October 2017 - 6
PLANADVISER - September/October 2017 - 7
PLANADVISER - September/October 2017 - 8
PLANADVISER - September/October 2017 - 9
PLANADVISER - September/October 2017 - 10
PLANADVISER - September/October 2017 - 11
PLANADVISER - September/October 2017 - 12
PLANADVISER - September/October 2017 - 13
PLANADVISER - September/October 2017 - 14
PLANADVISER - September/October 2017 - 15
PLANADVISER - September/October 2017 - 16
PLANADVISER - September/October 2017 - 17
PLANADVISER - September/October 2017 - 18
PLANADVISER - September/October 2017 - 19
PLANADVISER - September/October 2017 - 20
PLANADVISER - September/October 2017 - 21
PLANADVISER - September/October 2017 - 22
PLANADVISER - September/October 2017 - 23
PLANADVISER - September/October 2017 - 24
PLANADVISER - September/October 2017 - 25
PLANADVISER - September/October 2017 - 26
PLANADVISER - September/October 2017 - 27
PLANADVISER - September/October 2017 - 28
PLANADVISER - September/October 2017 - 29
PLANADVISER - September/October 2017 - Onboarding New Clients
PLANADVISER - September/October 2017 - 31
PLANADVISER - September/October 2017 - 32
PLANADVISER - September/October 2017 - 33
PLANADVISER - September/October 2017 - 34
PLANADVISER - September/October 2017 - 35
PLANADVISER - September/October 2017 - 2017 Retirement Plan Adviser Survey
PLANADVISER - September/October 2017 - 37
PLANADVISER - September/October 2017 - 38
PLANADVISER - September/October 2017 - 39
PLANADVISER - September/October 2017 - 40
PLANADVISER - September/October 2017 - 41
PLANADVISER - September/October 2017 - 42
PLANADVISER - September/October 2017 - 43
PLANADVISER - September/October 2017 - 44
PLANADVISER - September/October 2017 - 45
PLANADVISER - September/October 2017 - 46
PLANADVISER - September/October 2017 - 47
PLANADVISER - September/October 2017 - A Focus on the TDK Market
PLANADVISER - September/October 2017 - 49
PLANADVISER - September/October 2017 - 50
PLANADVISER - September/October 2017 - 51
PLANADVISER - September/October 2017 - 52
PLANADVISER - September/October 2017 - 53
PLANADVISER - September/October 2017 - 54
PLANADVISER - September/October 2017 - 55
PLANADVISER - September/October 2017 - 56
PLANADVISER - September/October 2017 - 57
PLANADVISER - September/October 2017 - Reharvesting
PLANADVISER - September/October 2017 - 59
PLANADVISER - September/October 2017 - 60
PLANADVISER - September/October 2017 - 61
PLANADVISER - September/October 2017 - Annuities in DC Plans
PLANADVISER - September/October 2017 - 63
PLANADVISER - September/October 2017 - 64
PLANADVISER - September/October 2017 - 65
PLANADVISER - September/October 2017 - Keeping Them Happy
PLANADVISER - September/October 2017 - 67
PLANADVISER - September/October 2017 - Laden With Student Debt
PLANADVISER - September/October 2017 - 69
PLANADVISER - September/October 2017 - When Advisers Tout Their Own Services
PLANADVISER - September/October 2017 - 71
PLANADVISER - September/October 2017 - 72
PLANADVISER - September/October 2017 - Cover3
PLANADVISER - September/October 2017 - Cover4
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