Compliance April 4, 2008

SPARK Issues Proposed Best Practices for 403(b) Info Sharing

The SPARK Institute has released for public review and comment the first of two proposals for best practices in information sharing among 403(b) plan providers and sponsors.
Reported by

In a news release, SPARK general counsel Larry Goldbrum said the exposure draft, “Best Practices for 403(b) Plans Information Sharing — Minimum and Comprehensive Data Elements,” summarizes what information will be shared among affected parties. “We are continuing to work on developing best practices regarding “how’ the data will be shared, “when’ particular data will be shared, and “how much’ will be shared in particular situations,’ Goldbrum said.

This draft best practices document is the result from The SPARK Institute 403(b) Plans Data Sharing Technology Summit held on March 26 that was attended by senior level information technology and business representatives from service provider firms and organizations sponsoring 403(b) plans.

Want the latest retirement plan adviser news and insights? Sign up for PLANADVISER newsletters.

SPARK asks that service providers and plan sponsors review the document and provide comments, concerns, or suggested improvements by April 18 as they desire to finalize the document by April 30th. Written comments can be emailed to Larry Goldbrum at larry@sparkinstitute.org.

The draft document can be viewed at www.sparkinstitute.org/comments-and-materials.php.

In Practice April 4, 2008

Advisers Say Many Clients Need More Time Before Retiring

Nearly half (46%) of the advisers in a recent poll said their clients are still tracking their expectations of a decade ago for a timely retirement.
Reported by

With 46% reporting clients still marching toward a properly financed retirement, those advisers reporting clients who have strayed from that retirement glide path said the clients will need one to five extra years to make up the retirement savings shortfall, according to a news release from the Berwyn, Pennsylvania-based Brinker Capital.

Advisers said among those who were off the mark, 63% had “started saving too late,” 55% noted “general procrastination,” and 23% said “didn’t have access to financial advice.”

For more stories like this, sign up for the PLANADVISERdash daily newsletter.

“We believe this statistic has powerful implications for the importance of good financial advice, staying the investment course and getting an early start to a systematic retirement savings regimen,” noted John Coyne, President of Brinker Capital. “While there may yet be some dark clouds on the economic horizon, overall the Retirement Indicator’s results provided a much more optimistic picture of America’s retirement landscape than we had initially anticipated.”

According to the news release, 91% of advisers said their clients are concerned about effectively managing distributions from their retirement assets, compared to 84% of advisers who indicated they’re concerned about the same issue.

Some 44% of the advisers said “time with family and friends” was their clients’ main retirement focus, followed by 17% who said “work” (second career), and 16% who noted “travel.”

The Brinker Retirement Indicator was conducted online by Brinker Capital in March 2008. Results are based on responses from advisers affiliated with insurance companies, independent broker/dealers, and in sole practice.

«

You have reached your limit of two free articles

Visit Homepage | Login | Subscribe