NAPA Net - Polling Places 012619

Do Plans Want to Keep Ex-Participant Accounts?

A recent survey of large plan sponsors finds that, for every employer that prefers terminated participants leave the plan, there are more than six that want them to leave their balances behind.

The survey – the 2019 Hot Topics in Retirement and Financial Wellbeing by Alight reports that only 5% of employers prefer that participants remove their balances from the plan when they stop working for the company.

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* 1. Do the plan sponsors you work with encourage ex-participants to leave their account balances in the plan?

Some do, most don't.

Yes, but only above a certain amount.

No.

Yes.

Most do, some don't.

Any comments?

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* 2. Has that desire changed in the past two years?

Yes, in the past they didn't want them, now they do.

No, they've always been willing to keep them.

No, they've never wanted to keep up with those accounts.

Yes, in the past they wanted to keep them, now they don't.

Any comments?

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* 3. Among plan sponsors who encourage keeping those account balances, what is their rationale/motivation (check all that apply)?

Desire to boost plan assets, reduce fees.

General paternalism.

Path of least resistance/communication at termination.

General ambivalence.

Pride regarding plan design/fund options.

The plans I work with don't encourage it.

Something else (please specify).

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* 4. What do you counsel them to do with ex-participant accounts?

To keep the ones above a specific amount.

To let them go.

To keep them.

I don't encourage them either way.

Any comments?

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* 5. Have you, as an ex-participant, left an account balance at a previous employer?

No, rolled them out/over.

Yes.

Not yet been an ex-participant.

Any comments?

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* 6. Other comments about ex-participant balances, keeping ex-participant balances, potential problems associated with keeping ex-participant balances, advice in dealing with ex-participant balances, or life in general?

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* 7. What is your role working with retirement plans?

Advisor

Provider

TPA

Plan sponsor

Recordkeeper

Other (please specify)

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* 8. What size plans do you PRIMARILY work with?

Under $10 million in assets

$10-$20 million

$20-$50 million

$50-100 million

$100 million - $250 million

$250 million - $500 million

Above $500 million

Other (please specify)

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* 9. Suggestions for future survey questions?

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* 10. All responses are anonymous and confidential, of course - but if you'd like me to know who you are, or allow for a response, you can leave your email below...