06.02.2019 01.46 UTC

IRA rollovers are big business for financial providers, representing over $450 million of annual inflows. “Bundled” recordkeepers can use a surprising variety of strategies to attract those assets from employer-sponsored plans-even plans the recordkeepers were hired to support.

The Lure of the IRA and the Power of Inherent Conflict

The Lure of the IRA and the Power of Inherent Conflict

“Bundled” retirement plan recordkeepers have significant financial incentives – and a surprising number of strategies—to convince employees to roll assets into IRAs.

Plan recordkeepers with “bundled” services can offer an array of financial services and products—including IRAs. When a plan participant has a distributable event (such as termination of employment or retirement) these bundled providers have tremendous economic incentives to favor the IRA rollover over retaining assets in the employer-sponsored plan. And, these providers utilize a surprising variety of tactics to attract this rollover revenue.

16.11.2017 08.22 UTC

Legally required reporting and disclosure materials provide employees with lots of information- but not enough insight. As a result, billions of dollars are rolled over each year into costly financial products.

Retirement Plan Disclosure: Why are Participants Adrift in a Sea of Information?

Retirement Plan Disclosure: Why are Participants Adrift in a Sea of Information?

Employers’ communication to employees about their retirement plans are designed to comply with various legal requirements.

Compliance with government required reporting and disclosure requirements gives participants lots of information – and pieces to the retirement puzzle. However, in their efforts to comply with these requirements, participants are not provided enough to assemble the disparate pieces of information available. And, there are some key pieces missing.