PLANSPONSOR - February - March 2022 - 22
PARTICIPANTS SPECIAL ISSUE | ROLLOVERS
GROW
L Itet
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22 PLANSPONSOR.COM February - March 2022 Art by Lars Leetaru
ecent Vanguard research examining defined contribution plans has found participants
are largely keeping retirement plan balances invested when they exit their employer's plan
due to either termination or retirement. In its " How America Saves 2021 " report, Vanguard
wrote, " Participants separating from service largely preserved their assets for retirement. "
Eighty-three percent of the participants surveyed kept their money invested by either
remaining in their employer's plan or rolling over their savings-to an individual retirement
account or new employer plan. " In terms of assets, 98% of all plan assets available for distribution
were preserved, and only 2% were taken in cash, " the report states.
Plan sponsors and recordkeepers have also increased the options available to participants,
according to the 2021 PLANSPONSOR Defined Contribution Benchmarking Report.
For instance, 67% of plans, last year, allowed retirees to receive distribution installments.
Distinct from participants' one option during the account accumulation phase-
i.e., to save-they have several to choose from when they leave their employer. These are,
commonly, keeping assets in their employer plan, rolling them into their new employer's
plan, moving them into an individual retirement account or cashing them out to receive a
lump-sum distribution.
The first option, especially, reflects a trend shift, says Jamie Worrell, founder and
managing director at Strategic Retirement Partners in Providence, Rhode Island.
" There has been an uptick in making it more attractive for participants to stay in the
plan, " he says. " Those who stay may benefit from a plan that's well-managed, having the
formal investment oversight of an independent adviser, economies of scale for pricing, and
access to investments they may not be able to access on their own. "
Fred Reish, a partner in Faegre Drinker, chair of the firm's fiduciary services Employee
Retirement Income Security Act group, and a columnist with Joan Neri for PLANADVISER
magazine, adds that, thus far, the shift is mainly confined to large companies.
" Large plans are slowly, but surely, beginning to encourage participants to leave their
money in place, " he says. " Sponsors will amend the plans to allow regular distributions,
All may have
better outcomes if
participants' assets
stay qualified
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PLANSPONSOR - February - March 2022
Table of Contents for the Digital Edition of PLANSPONSOR - February - March 2022
INSIGHTS
INDUSTRY ANALYSIS
RULES & REGULATIONS
UPFRONT
Let’s Talk
Let It Grow
When Workers Retire in Stages
Virtual Lessons Learned
Managed Accounts, Today
How ‘Well’ Is ‘Well’ Enough?
Differentiation by Income
FIDUCIARY FORUM
INSIDE ANGLE
PLAN PROFILE
PLANSPONSOR - February - March 2022 - Cover1
PLANSPONSOR - February - March 2022 - Cover2
PLANSPONSOR - February - March 2022 - 1
PLANSPONSOR - February - March 2022 - INSIGHTS
PLANSPONSOR - February - March 2022 - 3
PLANSPONSOR - February - March 2022 - INDUSTRY ANALYSIS
PLANSPONSOR - February - March 2022 - 5
PLANSPONSOR - February - March 2022 - RULES & REGULATIONS
PLANSPONSOR - February - March 2022 - 7
PLANSPONSOR - February - March 2022 - 8
PLANSPONSOR - February - March 2022 - 9
PLANSPONSOR - February - March 2022 - UPFRONT
PLANSPONSOR - February - March 2022 - 11
PLANSPONSOR - February - March 2022 - 12
PLANSPONSOR - February - March 2022 - 13
PLANSPONSOR - February - March 2022 - 14
PLANSPONSOR - February - March 2022 - 15
PLANSPONSOR - February - March 2022 - 16
PLANSPONSOR - February - March 2022 - 17
PLANSPONSOR - February - March 2022 - Let’s Talk
PLANSPONSOR - February - March 2022 - 19
PLANSPONSOR - February - March 2022 - 20
PLANSPONSOR - February - March 2022 - 21
PLANSPONSOR - February - March 2022 - Let It Grow
PLANSPONSOR - February - March 2022 - 23
PLANSPONSOR - February - March 2022 - 24
PLANSPONSOR - February - March 2022 - 25
PLANSPONSOR - February - March 2022 - When Workers Retire in Stages
PLANSPONSOR - February - March 2022 - 27
PLANSPONSOR - February - March 2022 - 28
PLANSPONSOR - February - March 2022 - 29
PLANSPONSOR - February - March 2022 - Virtual Lessons Learned
PLANSPONSOR - February - March 2022 - 31
PLANSPONSOR - February - March 2022 - Managed Accounts, Today
PLANSPONSOR - February - March 2022 - 33
PLANSPONSOR - February - March 2022 - How ‘Well’ Is ‘Well’ Enough?
PLANSPONSOR - February - March 2022 - 35
PLANSPONSOR - February - March 2022 - Differentiation by Income
PLANSPONSOR - February - March 2022 - 37
PLANSPONSOR - February - March 2022 - FIDUCIARY FORUM
PLANSPONSOR - February - March 2022 - INSIDE ANGLE
PLANSPONSOR - February - March 2022 - PLAN PROFILE
PLANSPONSOR - February - March 2022 - Cover3
PLANSPONSOR - February - March 2022 - Cover4
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