PLANSPONSOR - August/September 2021 - 15

says Ken Innis, chairman of R.O.W.
Group, a wealth transfer firm. " We've seen
the perspective that investing in low-cost
index funds leads to higher accumulation
and a large pot of money at retirement. The
flip side is we think low-cost investments
should be part of a diversified lineup,
but they don't always translate into better
performance, " he says.
In putting together an investment
lineup, the sponsor needs to work with
the plan's adviser to determine: " 'What
is active investment management trying
to accomplish?' " Innis says. " We think
a combination of [active and passive
investing], even lifetime income options, "
is the way to go.
R.O.W. is not of the opinion that a
4% drawdown strategy will be appropriate
for every retired participant, he adds. " For
69% of workers, guaranteed money is
one of their top goals, " Innis says, which
is why R.O.W. thinks lifetime income
options should be offered in the plan,
even to young workers. This way, they can
contribute to the option over the course of
their career and not face the difficult decision
of whether to place their bets on an
annuity when they reach retirement age.
Plan sponsors also need to listen to
their advisers' and recordkeepers' updates
regarding legislation and regulations,
sources agree.
In sum, Eissler says, " When you
step back and review all that's involved
in establishing, managing and monitoring
a qualified plan, it's little wonder
that there's such a critical need for experienced,
trained retirement professionals.
While there are a multitude of common
mistakes made when administering a
plan, at a high level, implementing an
ongoing review process is a critical best
practice that would serve sponsors well.
This would include mapping out review
meetings, maintaining minutes, documenting
retirement plan management
decisions and regular review of investment
policy statements [IPSs], as well as
continuous monitoring of provider fees
and services. " -Lee Barney
TIDBITS
Sponsors Assess Their Own Plans
z Strongly agree z Agree z Neutral z Disagree z Strongly disagree
We do a good job of helping employees enroll in the retirement plan.
46%
24%
36%
We offer benefits to help employees get to retirement.
46%
22%
We encourage employees to participate in multiple retirement plans.
34%
22%
15%
41%
38%
We encourage employees to increase their deferral or contribution rate.
31%
11%
We help employees make decisions at job change and retirement.
6% 21%
51%
We offers benefits to help employees once they have retired.
29%
4% 12%
47%
Of Future Interest to Sponsors
32%
Enrollment in an individual retirement
account once the 401(k) limit is reached
Auto-enrollment of Generation Z workers
into a financial literacy program
Auto-enrollment of all participants into
a managed account default investment
Auto-enrollment into emergency savings
account if a plan loan is requested
Semi-annual re-enrollment of employees
who have opted out
Auto-enrollment of employees into
a Roth plan (after-tax deferrals)
Emergency savings accounts requiring
$1,000 deferral before plan deferral
31%
21%
17%
17%
14%
9%
Source: Principal Retirement Security Survey: Plan Sponsor [Client] Results, June 2021 (Q2)
20%
8%
13% 3% 2%
7%
6%
2%
2%
1%
PLANSPONSOR.COM August - September 2021 15
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PLANSPONSOR - August/September 2021

Table of Contents for the Digital Edition of PLANSPONSOR - August/September 2021

To Ensure All Are Well
2021 PLANSPONSOR National Conference
Equipped for Anything?
The Security of Savings
Take a Load Off
PLANSPONSOR - August/September 2021 - Cover1
PLANSPONSOR - August/September 2021 - Cover2
PLANSPONSOR - August/September 2021 - 1
PLANSPONSOR - August/September 2021 - 2
PLANSPONSOR - August/September 2021 - 3
PLANSPONSOR - August/September 2021 - 4
PLANSPONSOR - August/September 2021 - 5
PLANSPONSOR - August/September 2021 - 6
PLANSPONSOR - August/September 2021 - 7
PLANSPONSOR - August/September 2021 - 8
PLANSPONSOR - August/September 2021 - 9
PLANSPONSOR - August/September 2021 - 10
PLANSPONSOR - August/September 2021 - 11
PLANSPONSOR - August/September 2021 - 12
PLANSPONSOR - August/September 2021 - 13
PLANSPONSOR - August/September 2021 - 14
PLANSPONSOR - August/September 2021 - 15
PLANSPONSOR - August/September 2021 - To Ensure All Are Well
PLANSPONSOR - August/September 2021 - 17
PLANSPONSOR - August/September 2021 - 18
PLANSPONSOR - August/September 2021 - 19
PLANSPONSOR - August/September 2021 - 2021 PLANSPONSOR National Conference
PLANSPONSOR - August/September 2021 - 21
PLANSPONSOR - August/September 2021 - 22
PLANSPONSOR - August/September 2021 - 23
PLANSPONSOR - August/September 2021 - 24
PLANSPONSOR - August/September 2021 - 25
PLANSPONSOR - August/September 2021 - 26
PLANSPONSOR - August/September 2021 - 27
PLANSPONSOR - August/September 2021 - 28
PLANSPONSOR - August/September 2021 - 29
PLANSPONSOR - August/September 2021 - Equipped for Anything?
PLANSPONSOR - August/September 2021 - 31
PLANSPONSOR - August/September 2021 - 32
PLANSPONSOR - August/September 2021 - 33
PLANSPONSOR - August/September 2021 - The Security of Savings
PLANSPONSOR - August/September 2021 - 35
PLANSPONSOR - August/September 2021 - Take a Load Off
PLANSPONSOR - August/September 2021 - 37
PLANSPONSOR - August/September 2021 - 38
PLANSPONSOR - August/September 2021 - 39
PLANSPONSOR - August/September 2021 - 40
PLANSPONSOR - August/September 2021 - Cover3
PLANSPONSOR - August/September 2021 - Cover4
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