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Quarterly Considerations – 03/31/2014

Plan Sponsors

Split Decision – The Tussey vs. ABB case represents one of the first lawsuits in which the plaintiffs successfully argued that companies violated their fiduciary
duty by failing to control 401(k) costs. The continuing litigation emphasizes the need for sponsors to monitor costs and create fee transparency.

Pushing the Percentages – Sponsors are increasingly pushing up auto-enrollment deferral percentages to help participants’ retirement outcome. Surveys show
that starting auto-enroll at 6% versus the traditional 3% results in little, if any, participant dropout.

Rethinking Risk – Funding levels continue to improve for defined benefit plans. Now is a great time for sponsors to re-evaluate their risks and consider options
such as immunization or plan termination.

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