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The Best and Worst of ERISA — Readers Weigh in

Last week we asked readers to vote on the best — and worst — aspects of ERISA and its progeny.

Rather than just asking to pick one, readers had an opportunity to choose between two alternatives — or to suggest their own. In fact, three of the top five “worst” aspects of ERISA, and three of the top five best aspects were added by readers during the voting.

Here’s what you told us.

The 'Best' of the Worst

The worst of the worst, by far in our reader polling, was “tons and tons and tons of paper disclosures.” And that’s before you consider that fifth place (separately, but arguably related) went to “Inability to provide electronic communications as the default mode of communications.”

Second place was taken by “DC plan documents getting so complicated, especially dealing with compensations.” This was submitted by a reader who went on to note that “as if I knew everything about all our clients’ payroll”).

There was a tie for third place between “so much liability & expense on plan sponsor” (submitted by a reader who explained that they “had a client who terminated their plan because it was costing too much, and the owner couldn’t save”), and a “worst” category that likely requires no additional explanation to our readers: “top heavy rules.”

IRS imposed prohibition on using forfeitures to fund safe harbor contributions” a “favorite” pet peeve of ASPPA General Counsel Craig Hoffman’s  came in sixth.

The Best of the Best

There was a tie for “best” — between automatic enrollment and safe harbor 401(k) plans, neither of which was included in the original 1974 legislation, of course. Catch-up contributions, another later innovation was third, with “superior creditor and bankruptcy protection” coming in fourth.

Ranked fifth, but certainly high on the list of all respondents’ thoughts, was “all the new pension careers.”

Thanks to all for participating in our poll.

Have an idea for another reader survey? Email us at [email protected].