John Sullivan of 401(k) Specialist speaks with Josh Kopec of Connor & Gallagher OneSource at the Nuveen Retirement Outcomes Leadership Committee meeting in Chicago. Their discussion centers on effective 401(k) plan design and strategies to improve participant outcomes.
Key Takeaways:
- Must-Have Plan Features:
Kopec emphasizes the importance of automatic features in 401(k) plan designs. This includes auto-enrollment of employees at a default contribution rate and auto-escalation, which gradually increases employee contributions over time. - Measuring Plan Success:
Success is benchmarked through metrics such as participation and deferral rates, along with more detailed factors like asset allocation. Ensuring allocations align with participant demographics, such as age, is a best practice. - Handling Plan Loans:
Kopec shares anecdotes on employees misusing 401(k) loans, including some quitting jobs just to access funds. He advocates for thoughtful loan policies—such as limiting the number of concurrent loans and introducing waiting periods—to balance accessibility with long-term savings protection. - Organizational Background:
Connor & Gallagher OneSource started as a commercial insurance brokerage and has since expanded into benefits consulting, HR outsourcing, payroll processing, and retirement plan consulting.