Managing a retirement plan is complex. You’re tasked with providing a comprehensive solution for all employees while keeping up with industry changes, proper procedures, and meticulous documentation. Employers are facing increasing demands regarding their retirement plans, and the risks of missteps are rising dramatically.
Even major, well-known companies aren’t immune. General Electric, Walgreens, and Home Depot have all faced class-action lawsuits related to their retirement plans. Recently, Southwest Airlines joined their ranks.
A lawsuit filed in U.S. District Court against Southwest alleges the company failed to remove an underperforming fund from its investment options, resulting in millions of dollars in losses for the 401(k) plan. This isn’t an isolated incident. UnitedHealth Care recently settled a similar lawsuit for $69 million, alleging the selection and retention of underperforming funds due to undisclosed relationships.
One of the biggest mistakes companies make is attempting to manage employee retirement plans in-house or with an advisor lacking specialized expertise in this area. Partnering with an independent advisory firm specializing in employee retirement plans is crucial.
Staying informed about local and national economic trends, political shifts, and new regulations is essential. For example, here are some key trends to watch in 2025.
- Secure act 2.0
- Employee education resources
- Health care costs impacting retirement planning
- Legislative changes to retirement savings programs
- The growth of alternative investment options within retirement plans
Oswald Financial can help your company navigate these complex issues. We provide expert guidance, helping you make informed decisions about your employee plans. We also empower your employees to understand their retirement options and pursue their financial goals.
This information is not intended as authoritative guidance or tax or legal advice. You should consult your attorney or tax advisor for guidance on your specific situation. In no way does advisor assure that, by using the information provided, plan sponsor will be in compliance with ERISA regulations.
Securities offered through LPL Financial, member FINRA/SIPC. Investment advisory services offered through Global Retirement Partners, DBA Oswald Financial, an SEC registered investment advisor and separate entity from LPL Financial.