As the GAO, DOL, IRS and others have noted, the current process of offering lump sum elections during lump sum windows and terminations leaves much to be desired. So much so that the title of the GAO’s landmark 2015 report reads:.
“Participants Need Better Information When Offered Lump Sums That Replace Their Lifetime Benefits"
February 2015, U.S. General Accounting Office
We couldn’t agree more…
Introducing Lump Sum Offer and Pension Election Services with CREWS technology for those plans that want to comply with the latest GAO report and DOL reports.
The GAO report itemizes a number of issues which fall into two categories: Disclosures and Advice/Analysis.
Disclosures are the responsibility of the plan sponsor and their professional advisers, particularly the actuaries.
Analysis and advice are generally not the responsibility of the plan sponsor and their professional advisers, for a variety of reasons. However, the GAO report does itemize a variety of participant information needs that fall into this category and generally are not being met, including answers to these questions:
Contact us for more information about how our systems and services can help all concerned: participants, plan sponsors, and consultants.
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