Some Employers Are Retaining Retiree Assets In-Plan

According to a recent piece from PlanSponsor, employers are recognizing some of the benefits that can be obtained by continuing to manage retirement fund accounts even after the employee in question has retired and left the company. 

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By allowing and even encouraging employees to keep their defined contribution assets in-plan, companies maintain a larger pool of managed assets, which has financial advantages when it comes to optimizing rates charged for managing the money and paperwork. 

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This trend is a reversal of course from previous business norms which sought to remove these assets from in-plan rolls as soon as possible upon each employee’s retirement in order to eliminate administrative responsibilities and any accompanying liability exposure. 

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You can read more about this topic here.