Retirement plans play an increasingly vital role in shaping the long-term well-being of organizations and their employees.
A well-managed plan empowers employees to prepare confidently for the future, while supporting organizations in meeting talent goals and regulatory requirements. Without a strong foundation, however, these plans can expose sponsors to significant operational, legal and financial challenges.
These dynamics were at the heart of our recent 2026 Employee Benefits Forum, where we examined the evolving landscape of retirement plan management; from new compliance mandates to participant engagement strategies. For those who missed the event, a full webinar replay is available.
Key Regulatory Updates and Deadlines
SECURE 2.0 continues to drive meaningful changes for retirement plans, with several provisions now taking effect. The new Roth catch-up contribution requirement, annual paper statement mandate, and long-term care premium exception are reshaping how sponsors approach plan management. For example, certain employees must now make catch-up contributions on a Roth basis if their 2025 FICA wages exceed $150,000; creating new compliance challenges and demanding attention to payroll coordination.
Sponsors should note that the deadline to formally amend plan documents for CARES Act, SECURE Act, and SECURE 2.0 provisions is December 31, 2026. Many plans have been operating in accordance with these rules, but formal documentation is essential. For plans maintained by collective bargaining agreements or public schools, later deadlines apply.
Fiduciary Responsibilities Under ERISA
Today’s regulatory environment emphasizes the importance of robust governance. ERISA imposes four fundamental duties on fiduciaries: loyalty, prudence, diversification, and adherence to plan documents. Personal liability for non-compliance is real; recent Supreme Court decisions have lowered the bar for litigation, increasing risks for plan sponsors.
Prudent process and documentation are vital. Sponsors should regularly review investment menus, benchmark fees, monitor service providers, and maintain comprehensive meeting minutes. Delegating investment oversight to an experienced fiduciary advisor can help mitigate risk, but sponsors remain ultimately responsible for overseeing plan operations, including service providers.
Trends Shaping Plan Design and Investment Menus
Sponsors are adopting more participant-friendly plan features and focusing on driving outcomes. According to industry surveys, most plans are not just meeting required changes but proactively enhancing plan design, offering higher matching contributions, automatic enrollment, and automatic escalation. Investment menus are trending toward low-cost index funds and collective investment trusts, which offer fee advantages and diversified options.
The Department of Labor’s proposed safe harbor for evaluating alternative asset classes; including private equity and cryptocurrency; is asset neutral but demands rigorous process and documentation. While new flexibility exists, careful evaluation and expert guidance remain critical. At Schneider Downs, we advise sponsors to proceed cautiously until final regulations are released, and even then, avoid untested asset classes until the legal landscape settles.
Enhancing Participant Engagement
A well-designed plan delivers limited value if participants don’t engage. Sponsors should highlight benefits regularly, simplify enrollment, provide personalized education, and leverage financial advisors to improve participation rates and outcomes. Technology, including AI-driven communication, is increasingly being used to personalize outreach based on participant demographics, balances, and behavior.
Employees consistently rate retirement plans as their most valued workplace benefit, making competitive offerings essential for attracting and retaining talent. Sponsors should communicate the value of the plan as part of a broader compensation strategy.
How Can Schneider Downs Help
Schneider Downs Retirement Solutions has experience in all facets of qualified plan delivery, which allows us to be flexible to the needs and direction of our clients. Our specialized team of advisers and consultants provide objective advice and expertise to help plan sponsors govern their retirement plans appropriately, mitigate risk, improve participant outcomes and support efficient and compliant plan operations.
To continue the conversation, contact our team at [email protected].
To learn more, visit our dedicated Retirement Solutions Services page.
Schneider Downs Wealth Management Advisors, LP (SDWMA) is a registered investment adviser with the U.S. Securities and Exchange Commission (SEC). SDWMA provides fee-based investment management services and financial planning services, along with fee-based retirement advisory and consulting services. Material discussed is meant for informational purposes only, and it is not to be construed as investment, tax or legal advice. Please note that individual situations can vary. Therefore, this information should be relied upon when coordinated with individual professional advice. Registration with the SEC does not imply any level of skill or training
