BCG Blog - Sponsors

Educational options for plan participants just got easier. More online educational programs used by schools and universities are now including personal finance options. Here are a few options for outsourcing your educational programs.

Many plan sponsors and human resource professionals may have felt increasing pressure to expand their benefits. But with that pressure comes the tension of the expense of employee benefits. This conflict usually arises over the budgeting process. Yet, there are steps that HR professionals can take now to reduce budget tension.

Two new rules on credit reporting and credit card late fees may help employees feel empowered to tackle retirement savings. New rules proposed by the CFPB may ease employees’ minds around their relationship with their consumer debt.

New SEC custodial rules coupled with concerns over liquidity of custodians is a cocktail mix sponsors may want to send back to the bartender. A few key points to consider of how these two trends as well as how employee education about fiduciary duty may help ease concerns about custodial liquidity and bank failures.

If severance plans make you sweat, hang in there. Here is the latest in information about confidentiality and clear communication around how to use severance agreements to your best advantage and the increasing use of upskilling.

Many plan sponsors made big moves in 2022, including changes to their plans to include more participants and to broaden their benefits. They also set their sights on incorporating the changes SECURE Act 2.0 brought.

A new trend in retirement divorce may impact plan management for participants who divorce and their families.

As long as there have been parents, there have been complaints about schools, and innovations in the educational model. Rapid growth in both homeschooling organizations and private schools may correspond to growth in eligibility for 403(b) plans.

Plan sponsors keeping an eye on trends in benefit plans and offerings may want to pay attention to a new field – manufacturing. Will development of new manufacturing across the U.S. change employee expectations for benefit plans?

SECURE Act 2.0 may require a bit of work for plan sponsors and those who manage the administrative side of benefit plans. We sat down and discussed the new act with our experts. They noted three main areas sponsors may want to consider: hardship deduction tracking; changes that could significantly increase or decrease the number of participants (and by association, your costs); and how forms are worded and stored.

In an effort to build benefits packages that attract workers, many employers are adding student loan repayments to their benefits lineup. This measure was often seen as part of professions requiring advanced degrees like law and health care. But a new study may add additional weight to that decision by showing that student loans impact retirement income long after employees have graduated.

For the last four or five years, every article seeking to review the past year’s events has summed up the previous twelve months as “a lot.” After so much unpredictability and turmoil in the markets, reading those future planning articles may seem less than fruitful. Yet, we still think it is important to take stock of what has happened in 2022 and look at what we think might be coming in 2023.

New lawsuits against Plan Sponsors are all over the map, and not just geographically. Sponsors are now being sued for choosing funds that are too cheap. The class action suits continue their pile-on against plan sponsors. Here are a few key takeaways.

When it comes to hiring, interviews are a two-way street. Are you marketing your benefits well? How best to be honest and open about benefits in recruiting.

Seasoning isn’t just for your stuffing. Instead, seasoning may be flummoxing your benefits team. Adding those workers can add a positive boost to morale but may be a nightmare for your administrative team. Here are three key considerations to discuss with your team.

Will there be a recession? Will it Impact retirement trends? For plan sponsors, who need to allocate budgets and recruit staff, those questions are more than theoretical. Here are our takeaways and suggestions that may help plan sponsors be prepared for the change in retirement trends caused by the slowing growth and increased inflation in 2022.

The numbers don’t lie: these five pressing topics that are top-of-mind for employees right now.

You may think you know how long to keep copies of previous benefit plans, but can your team answer the other important questions around retaining them?

When it comes to financial literacy, student loan forgiveness and mortgage rates may be top of mind for younger plan participants. These may be areas that participants have identified as weaknesses or gaps in their knowledge, but there’s an argument to be made for focusing on the basics of financial literacy: they don’t know what they don’t know.

Everyone loves a three-day weekend, so wouldn’t it be grand to have them every week? Maybe in theory, but in practice it’s far more complicated than that, and can require restructuring of an organization’s workforce. So how do sponsors know if it’s right for them?

There may be buzz around new laws on auto-enrollment’s impact on plan sponsors and their employees, but getting those employees to enroll and stay enrolled is still a pain point for many sponsors. If plan sponsors aren’t reaching their employees about the importance of saving for retirement, maybe there’s another option: social media influencers who post about personal finance.

Many companies offering their employees a new financial wellness benefit. Plan Sponsors may want to take note, not just for how your competition may be enticing employees, but also, how those programs can increase productivity. Here’s the Who, How, Why and What of it all.

Even small money decisions and discussions can be difficult and stressful but saying “no” and saying “yes” are essential skills every employee should learn.

Sponsors looking for more definitive guidelines following the Supreme Court’s Hughes decision may be waiting awhile. New court decisions haven’t stemmed the influx of cases, and further FINRA notices may indicate that Sponsors need to tighten their compliance efforts.

To meet employees where they are, plan sponsors should take a lesson from BuzzFeed quizzes and subscription boxes.