401k Sponsors Increasing Focus on Investments

The Profit
The Profit (Image via RottenTomatoes.com)

Now is the time for plan sponsors to review their investment lineup. Your company sponsored retirement plan deserves serious review. Your employees and yourself are relying a quality investment choice to successfully retire.

The Profit Sharing/401(k) Council of America (PSCA) found that half of plans that suspended their matching contribution in the last four years have fully restored it.  Of all plans reported on, 66.7% have maintained their matching contribution, 12.1% increased their match or added a matching contribution, 7.3% have fully restored suspended or reduced matches and 13.9% still have suspended or reduced matching contributions. PSCA contends that companies are focused on plan investments during this time of economic volatility: 63.8% of plans changed their investment lineup in the last year, and 56.2% changed their investments in 2010; up from 19.7% in 2009. 

David Wray, president of PSCA, says this shift is “dramatic.” “That so many plans sponsors are reviewing and reworking their investment lineups demonstrates the importance they see in delivering the very best investment opportunity as part of the 401(k) plan benefit for their employees, especially in these unusual times,” he said.

By outsourcing their investment fiduciary responsibilities to an advisor who agrees to act as ERISA 3(38) investment manager the plan sponsor will minimize their risk. The end result will also in a plan that will help their employees and themselves retire successfully.

Please comment or call to find out how this would help your plan.

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