Defined Benefit, or DB plan sponsors were immensely impacted when the market was pummeled by the COVID-19 crisis. It is predicted that the volatility of the marketplace will maintain for a while. As such, plan sponsors must contemplate creating new strategy to stay afloat during this time.
With regards to overall asset allocations, plan sponsors should think whether or not they are in suitable asset classes. What’s more, plan sponsors must decide whether they should put money into their DB plans in order to keep them on a glide path. Most plan sponsors making discretionary contributions to said plans have concluded they must back off due to the uncertainty for their establishment and the cost of capital.
Plan sponsors must ensure they have the proper guidance in place. This includes acquiring an ERISA bond for their company’s employee benefit plan. Our ERISA bonds are available for instant quote and purchase. We also include Fiduciary Liability Insurance and Cyber Liability Insurance in our 2 and 3-year ERISA bond packages. Fiduciary Liability Insurance protects the fiduciary against claims of actual or alleged breaches of duty, while Cyber Liability Insurance, which only comes with the ERISA bond package, helps you adeptly respond to a data breach. Get Protected Now