As 2016 draws to a close, most observers will reflect upon the events that have dominated retirement industry news coverage: the Fiduciary Rule, the 10-year anniversary of the Pension Protection Act, and the Presidential election. These events will clearly shape plan sponsors’ activities and priorities for the New Year.
Less publicized, but perhaps more impactful are the recommendations provided in November, 2016 by the ERISA Advisory Council (EAC) on “Participant Plan-to-Plan Transfers and Account Consolidation for the Advancement of Lifetime Plan Participation” – released following three years of expert testimony.
Plan sponsors would be well-served by reviewing the EAC’s Executive Summary and working the message of lifetime plan participation into their participant communications and retirement plan initiatives.
A good place to start is to encourage and facilitate plan-to-plan transfers, known as “roll-ins.”