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4 Fiduciary Resolutions for 2024
A brand new year awaits us – and with the New Year comes an opportunity to assess and reassess – for some when, resolutions for the cessation of bad behaviors and the beginning of better ones are in vogue. Here are some for plan fiduciaries for 2024 – that could benefit plan outcomes for years to come. See if your target-date options are over-... Read More >>
12 Key Elements in the IRS SECURE 2.0 'Grab Bag' Notice
On December 20, the IRS released the long-awaited SECURE 2.0 guidance (a/k/a the “Grab Bag”) in the form of Notice 2024-02. The notice is 81 pages of Frequently Asked Questions (FAQs) on various SECURE 2.0 provisions. As expected, there was no guidance related to student loan matching, pension-linked emergency savings accounts, or long-term part-... Read More >>
PBGC Seeks to Extend Info Gathering on SFA Regulation
The Pension Benefit Guaranty Corporation (PBGC) intends to ask the Office of Management and Budget (OMB) for approval to extend its collection of information contained in the regulation on special financial assistance (SFA). The PBGC’s request affects plan sponsors, since they are part of the process of seeking PBGC help through the SFA Program.... Read More >>
IRS Releases Q&A Guidance on Key SECURE 2.0 Provisions
The Internal Revenue Service has just released new guidance in the form of questions and answers addressing several key provisions contained in the SECURE 2.0 Act of 2022. The IRS advises that the notice (Notice 2024-02) is not intended to provide comprehensive guidance as to the specific provisions of the SECURE 2.0 Act, but rather is intended to... Read More >>
UP UP and Away for 403(b)s in 2022, PSCA Finds
Nearly all of the key plan metrics we track in 403(b) plans rose in 2022. Participation rates are up. Employer contributions are up. Immediate eligibility, Roth availability, and automatic enrollment use are up (significantly). Two items remained low – loans and hardships. All of these indicators point to 403(b) plans being in really good shape at... Read More >>
Gen Z: A Retirement Readiness Kaleidoscope
Generation Z—the youngest generation in the workforce—may also be the most interesting regarding retirement and preparing for it. Studies reveal a mix—cacophony?—of behaviors and attitudes among its members that suggest it is a group that may be receptive to a range of approaches in working to enhance their retirement readiness. Saving Rate In... Read More >>
What IBM’s 401(k)-Match Move Means for Advisors, Sponsors, Participants
Is IBM on to something? Big Blue recently announced that they would end the company’s 401(k) match effective January 1, 2024, replacing it with a Retirement Benefit Account (RBA). It will replace the match with a fixed employer contribution of 5% of compensation plus a one-time 1% pay increase. The pay credits will accumulate interest at an... Read More >>
Inspector General Concerned About EBSA’s Oversight Capability
The Office of the Inspector General (OIG) is concerned about the ability of the Department of Labor’s (DOL) Employee Benefits Security Administration (EBSA) to exercise oversight and protect the integrity of benefit plans, particularly concerning audits. The OIG for the U.S. Department of Labor expressed that sentiment in its most recent... Read More >>
Building Better Days
There are challenges facing not only those saving for their retirement, but also the retirement industry and professionals who work to help them to do so. A panel of industry leaders recently offered their perspective on meeting those challenges in order to better facilitate effective saving for the future. In “Institutionalization of DC Plans—the... Read More >>
ARA's Graff Presses for Plan-Level Advice Protection in DOL Fiduciary Rule
In prepared testimony to the Department of Labor's (DOL) leadership and staff, American Retirement Association (ARA) CEO Brian Graff highlighted “the significant regulatory gap” regarding plan-level advice on Dec. 12. Graff’s comments—made in support of the DOL’s latest attempt to modernize the 1975 regulatory definition of investment advice—came... Read More >>