While staying the course is often the best route in times like these, that’s not necessarily an option for all companies. In instances where short term cash flow is imperative to survival, there are a number of options as it relates to company retirement plans as outlined by portfolio company Vestwell.
By Allison Brecher, General Counsel, Vestwell There is not much written about how retirement plan sponsors should weather situations like the one we’re facing now, mostly because these are unprecedented times. However, the virus that’s causing a meltdown on Wall Street shouldn’t create a meltdown in your office. Knee-jerk reactions like eliminating all equities or terminating a plan altogether can have far reaching consequences. While the ideal outlook is to stay the course, we recognize that not all companies are in the position to do so. So what are the most effective options for sponsors looking to their 401(k) or 403(b) plans as a way to manage costs?