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1) Large plan sponsors will reduce and/or eliminate revenue sharing as much as possible
The practice of revenue sharing has received increasing scrutiny over the past few years, with organizations looking for a more equitable approach to paying for their retirement plan’s recordkeeping services. With rising popularity and shrinking recordkeeping margins, moving to an all-institutional fund lineup with zero revenue sharing does not require as large a per-head charge to participants as it would have even a few years ago. The major barrier for plan sponsors is that the majority of participants still believe their retirement plan is free; and moving to a zero revenue-sharing lineup dissolves this myth, potentially causing participant fallout.
2) More retirement readiness/financial wellness program implementation success stories
With plan sponsors and organizations feeling the effects of individuals unable to retire ‘on time,’ including increasing healthcare costs for an aging employee population and employee retention issues for those unable to advance, providing employees with the tools and education they need to successfully prepare for retirement is critical. The emphasis on breaking through and significantly moving the needle as it relates to retirement readiness and financial wellness is likely to be center stage for plan sponsors in 2016.