The 2012 Retirement Plan “Perfect Storm”

A “perfect storm” is an expression that describes an event where a rare combination of circumstances will aggravate a situation drastically. The term is also used to describe an actual phenomenon that results in an event of unusual magnitude.

With fee disclosure to plan sponsors by their plan providers and fee disclosure to plan participants in 2012 bringing much change to the retirement plan industry, there are other changes as well. In addition, by New Years, you will have 401(k) Advice regulations and the Department of Labor is still insistent on changing the definition of retirement plan fiduciary. So with all these changes, you have a Perfect Storm for retirement plan sponsors.

Unfortunately like Captain Billy Tyne and the crew of the Andrea Gail, retirement plan sponsors aren’t prepared for the Perfect Storm. Unlike a nor’easter, these changes will bring a lot of good to the retirement plan industry. However, if plan sponsors don’t understand the changes and get prepared for it, they can certainly capsize and risk their plan to unwanted liability.

It is incumbent on the plan sponsors to find quality plan providers like an ERISA attorney, third party administrator, and financial advisor to help guide them through a turbulent period that will require them to be more vigilant in their duties and more diligent in reviewing their plan providers.

This entry was posted in 401(k) Plans, Retirement Plans. Bookmark the permalink.

Leave a Reply

Your email address will not be published. Required fields are marked *