Based on focus groups commissioned by a number of top DC providers and conducted with plan sponsors by EACH Enterprises, there seems to be considerable concern about state-run retirement plans. Though the California model, which allows companies to choose from private and public options, seems to be getting the most support, plan sponsors are concerned about state-run plans due to:
• lack of transparency and customization;
• concern that assets will be used for other purposes; and
• lack of advisor involvement.
The focus groups revealed that plan sponsors may not be as aware as they should be about the potential rollback of tax incentives for retirement plans. But they also highlighted plan sponsors’ reliance on advisors to keep them up to date on regulatory requirements and help prepare participants for retirement.
