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Time to read: 5 minutes

Key takeaways

• Some retirement plan questions crop up over and over again, like how to improve plan reviews, make better use of automated plan features, or sharpen participant education.
• These plan sponsor questions live on because the answers depend on the climate we’re in.
• No advice is one-size-fits-all, but these three consultants see retirement plans of all kinds. They lend their best thinking to help your employer retirement plan thrive in today’s environment.

Max Denler
Assistant Vice President, Advisor
Alliant Retirement Consulting

Keeping employer retirement plans current and compliant can feel like a full-time job in and of itself. But I have some good news: While regular plan reviews shouldn’t be shortchanged, they can be integrated into existing committee meetings without becoming overwhelming. Focus your reviews on the following three key areas.

Recordkeeper relationship. Benchmark fees annually, but don't feel pressured to conduct full vendor reviews with the same frequency. A thorough request for information or proposal process every few years fulfills your responsibility. Smaller plans can lean toward five years, while larger ones can aim for three. And a good consultant can handle the heavy lifting, allowing your committee to review the findings during regular meetings.

Investment menu. Quarterly reviews remain the standard for plans with assets of more than $75 million; semiannual reviews may be sufficient with smaller plans. Reviews are critical fiduciary functions and shouldn't be skipped, but can be streamlined with preparation and focused discussions in committee meetings.

Retirement plan investment reviews can go astray quickly when committees lack a clear agenda or meeting materials don’t reflect the benchmarks, fees, and other details in the plan’s Investment Policy Statement. But when you effectively connect fund performance back to the investment policy you and your committee established, that makes for an efficient, productive investment review.

Plan design. Generally, you should audit your retirement plan design every two to three years, but timing can be flexible based on your organization's circumstances. Right now, many employers are facing tough budgetary decisions. To see how you compare to other employers, evaluate cost-driven plan features like match formulas and eligibility requirements using peer benchmarking data. Sometimes, you can adjust those benefits while keeping your retirement plan competitive.

Remember, the goal isn't perfect timing. It’s maintaining consistent oversight to protect your employees and your organization. Focus mostly on establishing a manageable plan review calendar that works for your team and resources.

Rich Schainker
Director, Retirement & Investments / DC Strategist
Willis Towers Watson US

Many employers find the upside of adding automatic features to 403(b) or 401(k) plans hard to resist. Both auto-enrollment and auto-escalation can have an immediate impact on retirement plans and on employees’ financial well-being, but these features also come with potential downsides that shouldn’t be overlooked.

Automatic enrollment improves retirement plan participation rates through enrolling employees by default, unless they choose to opt out. That often yields positive results quickly but puts the onus on employers to educate employees on their rights to opt out or modify their contributions, without also discouraging saving.

Automatic escalation takes things a step further by incrementally increasing employee contribution rates, typically by one percentage point annually until reaching a target level between 10% and 15%. Gradual increases help employees improve their retirement savings without feeling a significant impact on their paychecks.

Despite these advantages, automatic features may require more administrative support and added cost. Employers often must take extra steps to ensure the quality of their retirement plan data to minimize errors. They also need to consider the potential for increased employer contributions, which can go up as employee participation and deferral rates increase.

Additionally, given the growing number of mergers and acquisitions, particularly in health care, it’s important to be conscious of the automatic enrollment requirements for new retirement plans. Since the SECURE 2.0 Act, any new plan started after 2024 must adopt automatic enrollment. But employers can avoid that requirement by merging with a plan that pre-dates SECURE 2.0.

Last, keep in mind that automated features may not work for all organizations. Before moving forward, it’s worthwhile to get advice from experts based on your retirement plan’s goals, demographics, and strategy.

Travis Whitten
Principal, Financial Advisor
CAPTRUST

As both retirement plan participants and everyday consumers, employees have a lot on their minds: economic uncertainty and market volatility, not to mention their budgets and the usual financial demands. They want help making sense of the financial noise they’re hearing. That’s when practical, focused participant education can make all the difference.

First, acknowledge that many of your participants need help with basic financial wellness before they can take on retirement planning. With increased financial stress from inflation and higher interest rates, employees need practical guidance on budgeting and debt management. Consider offering targeted education that addresses these immediate concerns before going any further.

Second, this year's market volatility has many participants questioning their investment strategies. This presents an excellent opportunity to reinforce fundamental principles of investing. Help your employees understand “it's not about timing the market, it's about time in the market.” Remind them that regular payroll deductions often work in their favor during market downturns—they're essentially “buying on sale.” This message is particularly important for younger employees who have time to benefit from long-term market growth.

Finally, retirement income planning deserves special attention. Employees approaching retirement need help converting their savings into reliable income streams. This includes understanding how different sources of retirement income (namely their defined contribution plan, pension benefits, and Social Security) can work together. Consider bringing in independent advisors to help deliver these messages. Having an objective voice can help your retirement plan participants feel more confident in their decisions while demonstrating your commitment to their financial well-being.