401(k) plans require treasury, HR joint effort

Article Abstract:

Interdepartmental teams are being utilized to manage 401(k) plans. The human resource and treasury departments are working together to be able to provide the best retirement benefits for employees. This change in plan management is due to the emergence of defined contribution plans and the transfer of investment control of 401(k) plans to its contributors. Treasury and human resources must communicate and share information to come up with investment decisions.

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Why change 401(k) service providers?

Article Abstract:

Pension plan sponsors should review their plans from time to time to ascertain if it is time for them to change their 401(k) plan providers. Since not all plan providers offer new services, improvements and savings to their sponsor clients, it would be advisable to look for a provider that offers plan participants better investments and services, and reduces the workload of sponsors.

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Watch for style drift in 401(k) investment options

Article Abstract:

Plan sponsors should closely monitor changes in the style of 401(k) investment options. Deviations could lead to option overlapping, consequently making options too narrow. Style deviations commonly occur in growth and value funds. They can be detected through performance reviews and returns-based performance attribution.

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