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Are we Rothing the Employer Contribution Yet?
Sponsored by: MFS Investment Management Fifteen percent of plan sponsors have added the optional provision of SECURE 2.0 to allow participants to elect Roth treatment of employer contributions and a quarter of plans are actively considering this provision. Nearly forty percent have not and will not be implementing this provision and the rest are... Read More >>
Enhancing Employee Retention
Nonqualified deferred compensation (NQDC) plans are often offered by employers alongside the qualified plan to recruit and retain top talent. These plans have a lot of flexibility in design that allows employers to customize them to the unique needs of their employees which allows them to create a benefits package that is competitive to its... Read More >>
Complexity, Cost Concerns Have Sponsors on the Fence with In-Plan Income Solutions
While the SECURE Act was supposed to help pave the way for adoption of retirement income solutions in defined contribution (DC) plans, new research finds that plan sponsors still have some concerns. And this comes as concerns about the impact of inflation on retirement savings are raising fears among plan participants that they will run out of... Read More >>
Federal Auto-IRA Bill for Uncovered Workers Introduced in the House
On Feb. 7, House Ways and Means Committee Ranking Member Richard Neal (D-Mass.) introduced a bill to establish a federal auto-IRA for employers with more than 10 employees who do not currently sponsor a retirement plan. The Automatic IRA Act of 2024 would require employees to be automatically enrolled in either an IRA or some other “automatic... Read More >>
Longevity > Savings: NOW What?
Greater longevity than in the past is a good thing, as is concurrent big picture improvement in finances. But periodic economic challenges do take place, which can spell trouble—especially for retirees who did not save enough. A substantial majority of retirees in a study by Clever Real Estate—68%—responded that the recent economic conditions... Read More >>
Emergency Savings Provisions
Sponsored by: MFS Investment Management The SECURE 2.0 Act included two provisions geared towards helping employees handle financial emergencies. One provision is a penalty-free distribution of $1,000 per year from the 401(k) account and the other is the PLESA (Pension Linked Emergency Savings Account). We first asked sponsors about their... Read More >>
Financial Wellness: You Know It When You See It
In a storied decision, a judge once wrote that he couldn’t define a certain topic, but he knew it when he saw it. So, too, financial wellness—an expert panel recently suggested its meaning is “amorphous” and “evolving.” “Financial wellness” can mean different things to different people and depends on how one defines it, said Allison Mintzer,... Read More >>
Survey Stakes Out New Grounds in 401(k) Fee Benchmarking
A new report offers a new level of transparency on recordkeeping fees paid by the large plan targets of excessive fee suits—and calls out a number of misleading claims and benchmarks used by the plaintiffs’ bar in bringing those suits. According to the announcement from Encore Fiduciary, formerly known as Euclid Fiduciary, a division of Specialty... Read More >>
ARA Urges IRS to Revise Proposed Long-Term, Part-Time Guidance
The American Retirement Association (ARA) is calling on the IRS to revise several provisions contained in the proposed long-term, part-time employee (LTPTE) rules for 401(k) plans. Chief among the ARA’s recommendations is for the IRS to revise the proposed rule regarding vesting service to confirm with congressional intent and to provide relief... Read More >>
Hungry to Recruit for ‘Burrito Season,’ Chipotle Offers New Benefits
High employee turnover in the service industries—particularly food service—traditionally made it difficult to offer 401(k)s to employees, something SECURE 2.0 is looking to change. The student loan match program and financial wellness initiatives are generally receiving a lot of attention, mainly due to the former’s introduction in 2024, which is... Read More >>