For those overseeing retirement plans, spring offers a perfect opportunity to assess and refine strategies. By reviewing investment options and assessing plan fees, you will be providing the most up-to-date information about plan benefits and enhancement considerations to optimize your employees’ retirement goals. Here are some key points to consider:

  • Regular plan review. Conduct periodic reviews of the plan’s features, investment options, fees and administrative procedures. These reviews ensure alignment with the plan’s objectives and compliance with regulatory changes. They’ll also help you maintain a competitive edge when it comes to recruiting and retaining quality employees.
  • Fee benchmarking. Compare the plan’s fees against industry standards to ensure they’re reasonable and in the best interest of participants.
  • Fiduciary responsibilities. Maintain a clear understanding of fiduciary duties and regularly document decisions and processes. If you haven’t already, consider engaging a retirement plan advisor or consultant to help with investment selection and monitoring.
  • Participant education and communication. Make sure you’re offering educational resources and tools to help employees make informed decisions about their retirement savings. Regularly communicate updates, changes and investment options to participants. Consider adding financial wellness resources and tools based on your employees’ needs.
  • Automatic features and default options. If you haven’t already, consider implementing auto-enrollment, auto-escalation of contributions and appropriate default investment options to boost employee participation, savings rates and overall optimized retirement plans.
  • Compliance with regulations. Consider an annual compliance review to address any potential issues proactively. This foresight is especially valuable given the ongoing rollout of SECURE Act 2.0 provisions (both mandatory and optional).
  • Data security and privacy. Safeguard participant data by implementing robust cybersecurity measures. If you haven’t done so yet, review the DOL’s 2021 guidance1, which provides best practices to help plan sponsors, plan fiduciaries, service providers and plan participants maintain a prudent cybersecurity program within the retirement plan framework.
  • Vendor oversight. Review service agreements with plan providers regularly to ensure they’re delivering agreed-upon services efficiently and cost-effectively.
  • Plan documentation. Ensure plan documents are up to date and accurately reflect the plan’s operations as well as any changes in regulations or policies.
  • Plan design enhancements. Continuously evaluate the plan design to make adjustments that better meet the needs of participants, such as offering Roth contributions or other features that might align with their preferences.
  • Diversification and investment options. Evaluate and diversify investment options, providing a range of choices that align with different risk appetites and investment goals.
  • Retirement readiness assessment. Work with your plan advisor to regularly assess the plan’s effectiveness in preparing your employees for retirement. Consider tools or services that help employees understand if they’re on track for their retirement goals.

Through regular plan reviews, fee benchmarking, fiduciary diligence and robust participant education, you are tidying up your retirement plan and fostering a secure plan for all participants. Use this season's energy to optimize retirement plans that will empower your workforce toward a brighter financial future.

This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal or investment advice. If you are seeking investment advice specific to your needs, such advice services must be obtained on your own, separate from this educational material.

HUB Retirement and Private Wealth offers institutional and retirement services to for-profit and not-for- profit organizations and customized private wealth management services to individuals and families. HUB Retirement and Private Wealth employees are registered representatives of and offer securities and advisory services through various broker dealers and registered investment advisors, which may or may not be affiliated with HUB International. Insurance services are offered through HUB International, an affiliate.

1 Department of Labor, DOL’s Cybersecurity Program Best Practices (Employee Benefits Security Administration, n.d.)., accessed March 8, 2024