Friday, October 24, 2014

Survey Reveals High Level of Uncertainty Among Plan Administrators

HANYS Benefit Services’ 2014 Retirement Plan Survey uncovers significant uncertainty among employers about retirement plan administration.

The survey—which sought to identify significant trends in retirement plan services—found: Nearly 80% of respondents said they were unsure if their plan advisor was acting in a fiduciary capacity; 17% percent of respondents were unsure how their advisors were compensated; and one quarter said they were unsure how often their plan went out to bid—with 22% indicating their plan had never been put out to bid.

“Legal and regulatory changes can make it difficult to stay ahead of the fiduciary responsibilities associated with maintaining a retirement plan,” said James J. Kelley, President, Strategic Benefit Services. “However, this survey helped identify key best practices that can not only lead to an increased level of fiduciary protection for plan sponsors, but also result in improved employee participation and outcomes in retirement plans.”

The survey examined retirement plan availability and features, compliance matters, fiduciary oversight, and plan management and administration. Along with highlighting the survey results, Strategic Benefit Services’ report discusses an array of industry best practices to help retirement plan sponsors better understand and implement effective policies and procedures.

Survey participants represented a wide range of roles typically involved in retirement administration, including senior level executives, human resources executives, plan administrators, finance executives, and members of investment committees. Non-profit organizations made up the majority of participants, at 72%. Approximately 39% of respondents had plans with between 100 and 499 participants; some 80% of survey participants said there were 1,000 employees or fewer in their plan.

If you have any questions about this survey, or would like to begin talking to a dedicated retirement plan advisor, please get in touch by calling (800) 388-1963 or e-mail us at hbs@hanys.org.