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Client Service December 31, 2018
2018 Beyond(k): HSAs, Pension Risk Transfer, Student Loan Debt Relief
A look at some of the products and services retirement plan sponsors are requesting outside of 401(k) plans.
Reported by Lee Barney
Retirement plan sponsors are increasingly demanding value-add services from their advisers. Our Beyond(k) column in PLANADVISER print this year explored a few of the most popular new products and services sponsors are requesting.
HSAs in Retirement Planning
Health savings accounts (HSAs) have become more prevalent as more employers have turned to high-deductible health plans. High health care costs in retirement and the tax benefits and flexibility of HSAs are some of the other key reasons advisers should include them in their practices. Read more.
Giving Them a Break
Low unemployment, increasing student loan debt and interest in financial wellness are prompting some employers to consider offering student loan debt repayment programs. Advisers can help retirement plan sponsors select from the various ways to approach student loan debt repayment, help them assess and choose vendors and monitor the programs on an ongoing basis—all for a fee. Read more.
Pension Risk Transfer
With the pension risk transfer (PRT) market projected to exceed $23 billion in 2018, offering nuanced support to defined benefit (DB) plan clients considering a de-risking move is an option advisers should consider. To conduct a PRT, plan sponsors generally have two options: offer lump-sum benefit payments or buy a group annuity to cover liabilities. Read more.