Matthew Gnabasik pdf 401(k) Best Practices: A Guidebook for Plan Sponsors

401(k) Best Practices is a how-to book for plan sponsors, consultants and advisers; a guidebook to design a 401(k) plan which puts employees on track for retirement security while reducing the risk profile of the sponsoring organization. Written by a well-known institutional retirement consultant with nearly 30 years of experience, the book presents a series of tried and true , step-by-step actions to improve virtually any participant-directed, defined contribution plan.The book’s central argument is simple: lack of retirement preparedness is less an issue of personal choice than the net result of a series of systemic failures in first generation 401(k) plans. We have the tools – the data, experience, research and practical knowledge – to start making changes to improve 401(k) plans today. The clock is ticking, and the cost of not making these changes is a diminished retirement for millions of American workers. This book is divided into two parts: The first half describes the state of retirement in the USA today and how we here, and details the limitations of first-generation plan design. The second half lays out a strategic framework for evaluating 401(k) plans and then provides a series of best practices to materially improve those plans. Plan sponsors of all types and sizes of organizations will be reassured to know that they have the power to improve their plans in a way that makes economic sense for their company. It’s doable, quantifiable and the right thing to do if we want to help solve the retirement crisis in this country.Below is a brief synopsis of each chapter.Chapter 1 – Overview of the US retirement system; A brief history of 401(k) plans; Stats about the retirement crisis and the limitations of first generation 401(k) plans;Chapter 2 – An overview of behavioral finance (“Befi”) and its application to the participant-directed, defined contribution retirement model; How core Befi principles can explain the consistently irrational behavior of plan participants in first-generation plans;Chapter 3 – The role of the plan sponsor and best practices; Why sponsors need to redesign their plans;Chapter 4 – Defining plan health and two distinct but complementary approaches to benchmarking 401(k) plans;Chapter 5 – Best Practices Part 1: Auto features and rethinking the employer match; How to combine auto enrollment, auto escalation, and reconfigure the employer match formulafor maximum effect;Chapter 6– Best Practices Part 2: Investments; How to design a DC investment portfolio to meet the needs of all participants; Applying core Befi principles with Modern Portfolio Theory (MPT) principles to create a three-tier DC menu; Chapter 7 – Best Practices Part 3: Reenrollments, Reducing Plan Leakage, Retirement Income and Plan Fees;Chapter 8 – Best Practices Part 4: Employee Financial Education and Wellness; How to build a simple and effective financial wellness program;Chapter 9– Best Practices Part 5: Building a solid fiduciary governance program and minimizing risks to the plan sponsor and plan fiduciaries;Chapter 10 – How to Find and Select a Good Adviser; What does a good adviser do?Conclusion – The Impact of the Coronavirus on Retirement Readiness; The future of the DC industry;Glossary – Definition of basic terms.Appendix – Found only in the print version of the book.