In this age of relying heavily on technology, it is vital to take the necessary cybersecurity precautions. You want to make sure all sensitive information is highly protected. This article showcases some tips and tricks for plan sponsors.

Check if you are prepared for Retirement

Not changing the designation when appropriate may, at the least, subject your intended beneficiaries to the inconvenience and distress of the probate process and likely delay distribution of assets. Identifying and updating participants’ beneficiaries for 401(k) plan assets can ensure a smooth transition of 401(k) assets to the people who need them in their absence.

Retirement plan committees aren’t required by ERISA; however, they can be extremely beneficial nonetheless — especially for larger plans. They can even help in the event a sponsor is sued, as long as the committees are constructed and operated appropriately. Depending on the size of the plan, some organizations split up committee responsibilities into investment oversight, administration, and settlor functions.

While one could say it’s always a good idea to focus on well-being of any type—whether it’s physical, mental, or financial wellness—there’s perhaps never been a more important time to help employees improve their financial literacy, behaviors, and resilience than right now.

Contributing to your employer’s retirement plan as soon as you’re eligible is crucial to meeting your retirement goals. The earlier you start saving, the more time compounding interest can has to work on your behalf.

ERISA requires employers to retain certain documents. These records are critical if your plan were ever to be challenged by the IRS, DOL or plan participants.

Establishing financial wellness metrics has become increasingly important over the last year. The COVID-19 pandemic has created economic hardships for many American families, depleting emergency funds for some and forcing others to take on additional debt to cover necessary expenses. At work, the resulting stress can lead to increased absenteeism, decreased productivity and greater health care costs for plan sponsors.

Understanding generational attitudes toward investing and the cognitive biases which can lead participants astray is key to helping employees of all ages improve their financial wellness and prepare for a secure and successful retirement.