PLANSPONSOR - October 2017 - 4

Issue Intro
Core Topics
A
fter working at a large company for many
years, I recall being completely amazed at the
amount of funds accrued in my 401(k) plan
when I left for a new opportunity. You might say I
was entrenched in my job, and when I did occasionally
come up for air, it was not to check the status of
my retirement account. I was in complete " set it and
forget it " mode without knowing I was in it or ever
having heard of the term. It was all good.
So, what did I do about my newly found nest egg?
INSIGHT ON PLAN DESIGN & INVESTMENT STRATEGY
OCTOBER 2017 | $29 | WWW.PLANSPONSOR.COM
Also: 403(b)/457 Buyer's Guide
Moving
The role of the plan
sponsor in participant
account preservation
MONEY
I had a talk with human resources (HR) about next
steps for it. I also recall the information going in one
ear and out the other. Maybe he told me the ins and
outs of what I could do with my account, or maybe not, but as uneducated as I was
about retirement plans-and looking back, with the knowledge I have now, it was a
good plan-it left the company with me and was rolled into an individual retirement
account (IRA). In this issue's cover story " Moving Money " (page 22), we examine this
experience from your perspective and discuss the plan sponsor's role in participant
account preservation, including different philosophies on retaining these accounts,
and suggestions for educating participants about rollovers when transitioning to a
new employer or retirement.
The issue of rollovers is complex, and there is much talk in the industry about
how to prevent plan leakage. One recommendation has been to create automatic rollover
programs for participants with small balances. Such a system would require
information sharing among retirement plan providers.
There's a template for such information sharing, however, and it can be found
by looking at the 403(b) marketplace. Before regulations were issued, in 2007, the
marketplace was mostly unregulated and individualized, with many providers across
one plan, and participants buying annuities directly from individual advisers. But,
a decade later, 403(b) plan sponsors have grown far more aware of plan compliance
and the need for appropriate administrative processes and procedures-see
what they've learned in " Emerging From the Frenzy " (page 30), followed by the
2017 PLANSPONSOR 403(b)/457 Buyer's Guide. Our columnist Steve Saxon also
discusses the 403(b) marketplace (page 47).
Until I worked on the content for this issue, I was unaware that it's not just the
individual's responsibility to take a required minimum distribution (RMD)-in many
cases by age 70 1/2- but plan sponsors share that responsibility from a fiduciary or
administrative perspective. They need to ensure their participants satisfy these government
requirements. In " Navigating RMDs, " this issue's PS Coach (page 44), we
fill readers in on what they need to know, including how some providers are automating
not only RMD participant reminders but also distributions when participants
neglect to take them.
Other core topics we cover this month are " Best Practices for the IPS " (page 38)
and " The Middle Ground " (page 40), which explores factor investing. We're always
interested to know what you have found to be the most helpful takeaways from the
issue. Let us know at editors@strategic-i.com. -Judy Faust Hartnett, Managing Editor
4 PLANSPONSOR.com October 2017
EDITOR-IN-CHIEF: Alison Cooke Mintzer
alison.mintzer@strategic-i.com
CREATIVE DIRECTOR: SooJin Chun Buzelli, svp
soojin.buzelli@strategic-i.com
MANAGING EDITOR: Judy Faust Hartnett
judy.hartnett@strategic-i.com
MANAGING EDITOR, PLANSPONSOR.com:
Rebecca Moore, rebecca.moore@strategic-i.com
EDITORIAL STAFF: Lee Barney, John Manganaro,
Javier Simon, Amanda Umpierrez, Karen Wittwer
CONTRIBUTORS: John Keefe, Judy Ward
SURVEYS & RESEARCH: Quinn Keeler,
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DESIGN & PRODUCTION: Lynn Connelly,
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DESIGN CONTRIBUTION: Cherese Rambaldi
ART CONTRIBUTORS: Melinda Beck, Chris Buzelli,
Edward Carvalho-Monaghan, Joseph Ciardiello,
Jackie Ferrentino, Jon Han, Jasjyot Singh Hans,
Riikka Laakso, Vinnie Neuberg, Victo Ngai
(cover), Paige Vickers, Nicole Xu
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PLANSPONSOR - October 2017

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