Participant Managed Account Fees are Expensive and Add up Over Time

For a fiduciary committee responsible for assessing a plan’s costs and prioritizing participants’ best interests, every fee carries weight. With managed accounts, the extra charges can be a substantial detriment to participants’ retirement readiness.

Mind the Red Flags: Unraveling the Customization Claims of 401(k) Participant Managed Accounts

401(k) Participant Managed Accounts are Not as Customized as Sellers Would Make It Seem. It is our view that, under the best circumstances, managed accounts offer true benefits to only a few plan participants who have specific and unique circumstances. However, for the majority of participants, these accounts are likely to resemble Target Date Funds (TDFs), with the added drawback of higher fees and potentially lower returns.

Managed Accounts Lack of Performance Benchmarking is a Red Flag You Shouldn’t Overlook

Over the last several years, there has been a growing trend of plan advisers and recordkeepers aggressively selling Participant Managed Accounts in employer-sponsored retirement plans.

Overseeing a 401(k) Plan Bound for Retirement Island? Don’t Forget the SPD

PCI takes a deeper look at one critical, yet often overlooked, resource that can help 401(k) fiduciaries feel comfortable and confident navigating the rules of their retirement plan.

Take Care of Your Employees – Even When They Are Gone

The recently launched Portability Services Network (PSN) is one potential solution. (link to PSN website) The PSN is a digital hub connecting retirement plan record keepers and plan sponsors aiming to reduce cash outs by introducing auto portability for employees leaving their job with a balance under $5,000.

Automatic Salary Deductions Position Employers to Help Employees Get on Track for Retirement