Spring Cleaning Your Retirement Plan: Key Areas for a Practical Review
Spring is a natural time to pause and take stock. For plan sponsors, it can also be a timely opportunity to review the health of a workplace retirement plan. Just as a seasonal reset helps keep a home organized, a focused plan review can help ensure retirement benefits continue to function as intended for employees and the organization.
A spring review does not need to involve major design changes or a full plan overhaul, but sponsors may find value in revisiting a handful of core areas each year. These check-ins can support plan operations, reinforce fiduciary oversight, and help keep the plan aligned with the needs of a changing workforce.
Review Participation and Savings Behavior
One of the first areas to examine is employee participation and deferral behavior. Participation rates and average contribution levels can provide insight into how employees are using the plan. If engagement appears lower than expected, it may indicate an opportunity to revisit communication strategies or educational resources.
Some employers also use this review to evaluate whether existing plan features, such as automatic enrollment or contribution escalation, continue to support employee participation goals.
Ensure Plan Design Still Fits the Workforce
Workforces evolve, and plan design may need to keep pace. Eligibility rules, matching formulas, and vesting schedules that worked in the past may warrant another look as demographics shift. A spring review provides space to assess whether the plan is still aligned with current hiring patterns, retention goals, and employee expectations.
Take a Fresh Look at Investments and Fees
Another common focus area is the investment lineup. A review can help confirm that options remain diversified and consistent with the plan’s stated objectives. Sponsors may also take this time to revisit the plan’s qualified default investment alternative, such as a target-date fund series, to help ensure it remains appropriate.
Fees and service provider arrangements often go hand in hand with this discussion. The goal is not necessarily to reduce costs, but to confirm that fees are reasonable for the services provided. Periodic benchmarking and documentation can support fiduciary processes and help demonstrate a prudent approach to plan oversight.
Confirm Documentation and Governance Practices
Spring can also be a good checkpoint for plan documentation and governance. Reviewing whether required notices arrive on time, and whether key documents such as the summary plan description and investment policy statement are current, can help reduce administrative risk.
Governance reviews often include confirming fiduciary roles and responsibilities. Even a brief review of committee charters or meeting calendars can help ensure responsibilities are clearly defined and consistently followed.
Refresh Participant Communication
Finally, spring can be a good time to evaluate participant communication. Messaging that once felt clear may benefit from simplification or a refreshed approach. Reviewing when and how communications are delivered can help ensure information remains accessible and relevant throughout the year.
A Practical Annual Habit
Spring cleaning a retirement plan is less about making big changes and more about building a consistent review habit. By revisiting a few essential areas each year, plan sponsors can support plan operations, maintain compliance processes, and keep retirement benefits aligned with employee needs in a practical, manageable way.
This is intended for informational purposes only. You should not assume that any discussion or information contained in this document serves as the receipt of, or as a substitute for, personalized investment advice from Savant. Please consult your investment professional regarding your unique situation.
Patricia L. Hutchinson
Director of Retirement Plan Services
AIF®, MBA