SECURE 2.0 Is Finally Passed With Gifts for Everyone
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Legislative and Washington DC SECURE 2.0 Is Finally Passed With Gifts for Everyone SECURE 2.0 implements comprehensive pension reform and includes many changes that have been on the benefits community's wish lists for some time. Here is a summary of some of the major changes grouped under the goals of the legislation. Provisions reflect several themes. Source: Cohenbuckmann.com SECURE 2.0: A Summary of Key Changes Impacting Employer-Provided Retirement Plans SECURE 2.0 contains significant changes to employer-provided retirement plans and individual retirement plans, referred to in the CAA as the SECURE 2.0 Act of 2022. These provisions largely build upon the changes made under the SECURE Act, which was signed into law on Jan. 1, 2020. This article addresses some of the key provisions under SECURE 2.0 that will impact employer-provided retirement plans. Source: Foxrothschild.com SECURE 2.0 Act of 2022 Arrives: Another Landmark Retirement Package The wait is over for SECURE 2.0, a long-awaited (and debated) package of retirement plan reforms. Given the breadth of the changes and the anticipated regulatory efforts to implement the new law, virtually all qualified retirement plans will need to be reviewed in conjunction with SECURE 2.0's passage. This is a high-level summary of some key highlights for employers and retirement plan sponsors. Source: Erisapracticecenter.com Congress Delivers SECURE 2.0 for the Holidays Congress made several changes to retirement plans as part of the Consolidated Appropriations Act of 2023, which recently passed both the House and Senate. The final bill contains several provisions affecting retirement plans under Division T of the bill titled "Secure 2.0 Act of 2022." SECURE 2.0 builds on the Setting Every Community Up for Retirement Act, which was passed in 2019. Here is a high-level summary of some of the key provisions that affect plan sponsors of retirement plans. Source: Benefitsnotes.com SECURE 2.0 Retirement Reforms Set to Become Law The enactment of SECURE 2.0 caps several years of congressional effort. Numerous stakeholders have worked to educate lawmakers about the value of the employer-based retirement system and the need for many policy changes to support it. This article provides a high-level summary of some key provisions in the legislation. Source: Mercer.com Top Five Changes in the SECURE 2.0 Act for Plan Sponsors and Participants As part of the omnibus spending bill passed in a frenzy before the holiday break, Congress included the SECURE 2.0 Act. This new law contains several changes that will have a profound impact on the rules governing retirement plans. This article summarizes the top five provisions affecting plan sponsors and participants. Source: Littler.com SECURE 2.0 Changes Rules for Retirement Plans The Act makes numerous changes affecting retirement plans. This article provides an overview of the changes that we believe are of most interest to larger plan sponsors. Any plan amendments needed as a result of these changes must be adopted by the last day of the 2025 plan year unless extended by the DOL or the IRS. Source: Foley.com »» Click here for more on Legislative and Washington Actions General Items How Does One Implement a Student Loan Matching Benefit? The SECURE 2.0 Act passed Congress and would allow employers to offer matching 401k, 403b, 457b, and SIMPLE IRA contributions if the participant elects to pay down student loans instead of contributing to a retirement plan. This option would be available starting after December 31, 2023. How should plan sponsors go about implementing this provision, if they choose to? Source: Planadviser.com Fiduciary and Plan Governance DOL's New Rule on ERISA Investment Duties and Its Relationship to ESG The new rule guides the fiduciary duties of prudence and loyalty as they apply to the selection of plan investments. The clearest path to adopting an ESG investment or option, safely and without unnecessary legal risk and uncertainty, is to do so for the express purpose of maximizing risk-adjusted financial returns and to contemporaneously document the reasons for that determination. Source: Cov.com »» Click here for more Fiduciary and Plan Governance Material 403b Plans What Does SECURE 2.0 Mean for 403b Plans? The SECURE 2.0 Act makes several changes to 403b plans, aiming to standardize them with 401k plans to give 403b plan sponsors and participants broader retirement saving options. Experts weigh in on how SECURE 2.0 may make 403b plans operate more like 401ks, including being able to participate in PEPs. Source: Planadviser.com »» Click here for More 403b Material Court and Legal The Colgate Participant Account Cyber Theft Case Survives Dismissal A New York federal district court ruled on December 19, 2022, that a participant in the Colgate-Palmolive defined contribution plan adequately alleged breach of fiduciary duty claims against the plan recordkeeper and the plan fiduciary committee. It is a curious decision that is worth studying to understand whether plan participants have potentially viable claims against the plan recordkeeper and plan fiduciaries when a participant's account is hacked. Source: Euclidspecialty.com Excessive Fee Suit Targets Service Provider "Overpayments" Commenting that "the proliferation of 401k plans has exposed workers to big drops in the stock market and high fees from Wall Street money managers," another excessive fee suit has been filed against a plan smaller than typical for this genre. Source: Napa-net.org Wells Fargo Settles Multimillion Dollar 401k Suit With DOL Wells Fargo has settled with the DOL after an investigation revealed that the fund overpaid for company stock purchased for the plan during specific years. The settlement requires Wells Fargo to pay almost $132 million to its 401k plan participants and a penalty of nearly $13.2 million. The lawsuit involves Wells Fargo and Company, Wells Fargo Bank, and GreatBanc Trust Company, a trustee of the 401k plan. Source: Hallbenefitslaw.com »» Click here for more Court and Other Legal Issues Compliance and Regulatory RMD Age Increases to 73 in 2023 Under SECURE 2.0 While it came down to the wire, both the House and Senate have now approved the much-anticipated SECURE 2.0 Act of 2022 as part of the mammoth $1.7 trillion omnibus spending bill. Source: 401kspecialistmag.com IRS Proposed Regulations Would Permanently Allow Remote Witnessing of Spousal Consent The IRS issued new proposed regulations that would permanently change the rules that require spousal consent for plan distributions to be signed in the physical presence of a notary or plan representative. Specifically, the proposed regulations would allow plans to accept remote notarization or witnessing by a plan representative if the remote process meets certain standards aimed at ensuring the integrity of the process. Source: Erisapracticecenter.com »» Click here for more Compliance and Regulatory Material
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