Retirement Plan FOCUS Bulletin - Fourth Quarter
What's new at Fulton Financial Advisors?
Acquisition of BenefitWorks
Our team is pleased to announce that on November 20, 2020, Fulton Bank completed the acquisition of BenefitWorks, Inc., a registered investment advisor and retirement services firm headquartered in Lebanon, PA. The company was founded more than 35 years ago as Trefsgar & Co., later changing its name to BenefitWorks, Inc., in 2007. The firm specializes in investment advisory services and qualified retirement plan recordkeeping for companies, organizations, and individuals throughout the mid-Atlantic region. BenefitWorks had approximately $177 million in assets under management or administration as of September 30, 2020.
“Through our acquisition of BenefitWorks, Fulton will be able to reach and serve a greater number of clients in central Pennsylvania,” said Curtis Myers, Chairman and CEO of Fulton Bank. “We respect the business that Brooks Trefsgar and his team have built over the past 35 years and we share their focus on providing personalized financial solutions tailored to each unique client. We look forward to sharing what Fulton has to offer to BenefitWorks’ clients: Outstanding service, coupled with a solid reputation and best-in-class products.”
“BenefitWorks is excited for our qualified plan clients and our individual investors. Plan sponsors, plan participants, and individual investors will all benefit from familiar continued hands-on services and will be the beneficiaries of many Fulton enhancements,” said Brooks Trefsgar, President of BenefitWorks.
BenefitWorks will initially continue to operate as a separate subsidiary of Fulton Bank, and over the next several quarters, BenefitWorks clients will be transitioned to the Fulton Financial Advisors platform.
Maintaining a Better Plan
Revisit the Goals for Your Plan
For most of our clients, their retirement plan was implemented more than just a few years ago – we have many clients who have been with us for well over 10 years or more. Since your plan was implemented, I’m reasonably confident that your firm has grown and undergone many changes in direction and focus. Have you considered if your plan has changed to meet those goals?
Many firms start a retirement plan because it’s typically a standard benefits feature. But, as your business and personal needs change, perhaps your plan needs to change as well.
For example, if you are a business owner or a key employee, your firm may have reached a point where you are seeking to maximize the amount of money saved for retirement for owners and key individuals – which can be explored through changes in plan design. Or, you may have a growing concern for ALL your employees and their level of preparedness for retirement and wish to explore what techniques could be utilized to help facilitate additional savings. A final example may be that perhaps you just want to provide a more attractive plan that may differentiate you from other employers in your recruiting efforts.
These are just a few examples of how goals and interests may have changed and there are ways that we can help to make changes to your plan design to meet these goals. If you feel your goals are changing but your plan has not changed with them, please reach out to your Relationship Manager to discuss further.
Industry & Legislative Changes
Securing a Strong Retirement Act of 2020
The Ways and Means Committee recently introduced the “Securing a Strong Retirement Act of 2020.” This 132-page bill contains 36 separate provisions. Although the provisions are wide ranging, the focus of the bill is to increase retirement savings through additional retirement plan coverage for individuals and some simplification of plan rules. A few examples of provisions that may be of interest to our clients are:
- Expands auto-enrollment to include employees immediately upon hire.
- Increases catch-up contribution limits for those individuals 60 and over.
- Increases required minimum distribution age to 75.
- Simplifies the correction process for routine errors within a plan.
- Creates a national database of 401(k) accounts whose owners have been “lost.”
- Allows for retirement plan distributions as charitable contributions.
- Includes performance benchmarks for asset allocation funds.
- Expands taxpayer credits.
Currently, there isn’t much of a sense of support for the bill (dubbed Secure Act 2.0) and whether it will be passed in 2020. However, it does continue to reflect that ensuring our nation is prepared for retirement continues to be a focal point for the federal government.
Don't take our word for it
How DC Plan Participants Acted During First Half of 2020
This article highlights what we feel is a result of our industry doing a better job of educating participants. Overall, participants have done well at maintaining their investment discipline during this challenging year. Finding bright spots in 2020 is certainly not easy, but seeing these results and how most participants handle the markets in 2020 is very encouraging.