Cyber for Plan Sponsors

Retirement Plans In Demand


The “great resignation” is not over: a survey from Principal Financial Group found that a third of workers in the U.S. are considering job changes or retirement in the next 12-18 months. Benefits are going to be ever more critical to retaining workers—and retirement plans are in demand.

Employer Match?

With 34% of workers unsettled in their current roles and 81% of employers concerned about competing for talent, benefits packages are in the spotlight. As Plan Sponsor reports:

 Workers responding to the survey identified a strong focus on retirement planning and security when making employment decisions. More than three quarters (77%) said the COVID-19 pandemic has driven them to focus more on saving for retirement. When evaluating new job opportunities, 91% thought an employee match was the most important retirement plan feature, 80% said eligibility, 74% said vesting requirements for a company match, 73% said investment options on offer, and 70% withdrawal options at job change or retirement. Retirement plan sponsors appear more focused on meeting workersretirement savings needs. The survey showed that 67% of plan sponsors intend to focus on retirement planning education” in 2022, up from 48% this year. Meanwhile, more than half of workers considering a job change say they would roll over their current retirement plan to an IRA or to their new employers retirement plan.

Periodic review of the retirement plan to ensure it is benefiting employees is indeed an important duty of plan sponsors. Experts advise plan sponsors to look at retirement plan participation rates, deferral rates, and personalized rates of return at least annually, if not quarterly. Doing so will help you understand engagement levels and inform plan design and communication strategies to further help participants—and the plan as a whole—achieve end goals. Increasing auto-enrollment deferral rates and adjusting the employer match are two examples of how to plan design adjustments that might advance plan goals—and support employee saving practices.

It’s also best practice to make sure that the retirement plan protections are comprehensive—and up to date. Remember, the required ERISA bond protects the assets of the retirement plan from theft; Fiduciary Liability Insurance coverage protects you and your assets from personal liability; and, Cyber Liability Insurance safeguards your company and plan from covered losses and expenses in the event of a cyber breach. With Colonial Surety, you can easily and affordably secure this complete coverage package in minutes, now: Plan Sponsor Package Here.


Options and Communication Too

As the work world—and employee expectations—continue changing rapidly, don’t be surprised by increased interest in the options offered in the retirement plan. For example, some employees are interested in cryptocurrency. Interest in lifetime income options, like annuities, is growing too. Increased financial literacy is also of interest to employees, so don’t be shy about asking your providers for more clear and relevant communications and educational supports. For example, are your plan service providers excelling at giving participants high quality, data-rich information, and education?


Don’t forget to revisit your risk management plan before the year ends. In the event, a misunderstanding leads to a plan participant suing, what’s your coverage? Since you are a fiduciary, your personal assets could be exposed. Defense against allegations of a fiduciary lapse is costly and disruptive, with ERISA lawyers costing over $600 per hour. When you obtain fiduciary liability insurance from Colonial Surety Company, you and your business will be covered It covers against claims of alleged or actual breaches of duty in connection with the employee retirement plan. Colonial even includes cyber liability insurance—and the annual premium for this comprehensive protection is less than just an hour or two with an ERISA lawyer. Get protected now: Choose Your Plan Sponsor Coverage Here.


Colonial Surety Company is in business all across the USA. We are rated A Excellent” by A.M. Best Company and  U.S. Treasury listed. Serving customers since 1930, Colonial Surety is the trusted source for the pension industry to secure legally required ERISA bonds, fiduciary liability insurance, and cyber-liability insurance. We help safeguard plan sponsors, pension professionals, and financial advisors — and keep their businesses compliant — with pain-free, efficient, and friendly service every time.