About the same percentage of HR professionals report that their company currently does--or might be willing--to provide 401(k) investment advice to its employees as those who report that they don't provide such advice and have no plans to do so.
When asked "Do you provide 401(k) investment advice to your employees?," 48 percent responded "No, and we have no plans to," while 45 percent responded "Yes," and 7 percent responded "No, but we are considering it" in a recent Compensation.BLR.com poll.
Speaking at the recent 20th Annual Benefits Management Forum & Expo, William Arnone and Lynn Finkelstein, both Employee Financial Services Practice Leaders with Ernst & Young, explained that the Pension Protection Act of 2006 enables plan sponsors to offer investment advice to employees without exposing themselves to liability for the outcome of that advice (so long as they follow rules and regulations regarding the selection of a provider/advisor).
The speakers told their audience that they should be thinking about whether offering 401(k) advice is the right decision for their organizations. Factors to consider include company culture, workforce composition, and current 401(k) participant patterns.
For further information on these factors, you can access our coverage of the conference session here. [Trial or subscription to Compensation.BLR.com required.]
The Compensation.BLR.com poll included 258 respondents.