The Plan Sponsor's Guide to PEPs
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In This Issue
General Items The Plan Sponsor's Guide to PEPs This guide to PEPs is a resource for employers interested in providing 401k or 403b benefits using a pooled employer plan. Each section of the Guide takes 401k and 403b plan sponsors through the steps of how PEPs work and whether they are an appropriate approach for an employer; how to evaluate pooled plan providers; best practices for implementation and monitoring; and reviewing plan design and investment menus that can help meet the retirement needs of their participants. Source: Pionline.com 2024 Retirement Saver's Credit The Saver's Credit, also known as the Credit for Qualified Retirement Savings Contributions, was designed to help low- to moderate-income individuals save for retirement by providing an additional credit toward tax liability on top of existing retirement savings incentives. Learn who is eligible and how it works. Source: Usicg.com
Insight: Studies, Research, Analysis, and Papers 2024 U.S. Retirement Market Outlook Looking into 2024, retirement income, personalization, and diversification will be the key themes for DC plan sponsors and their consultants and advisors. This 2024 U.S. Retirement Market Outlook explores why these topics are expected to shape the retirement landscape in the coming years and outlines the underlying factors that are creating both challenges and opportunities for the retirement industry. It also provides action items or next steps for plan sponsors, consultants, and advisors. Source: Troweprice.com Infographics: Workers Prefer Financial Benefits to Lifestyle Perks Retirement plan advisers and their plan sponsor clients often work hard to create great benefit plans for employees. But is that work truly appreciated? According to findings from Morgan Stanley's most recent Investor Pulse Survey, the answer is often "yes." In a survey of over 900 people, Morgan Stanley found that most employees will pick a financial workplace benefit over a lifestyle perk such as first-class seats for a business trip or box seats to a game or show. Source: Planadviser.com »» Click here for More Studies, Research, and White Papers Items of Special Interest to Advisers and Other Service Providers Fiduciary Rule Comment Letters Flood in to DOL as Deadline Passes Many in the retirement industry were not happy the comment period was so brief for the Department of Labor's proposed "Retirement Security Rule: Definition of an Invest. Advice Fiduciary," but in the absence of an extension, the comment letters flooded in before it ended on Jan. 2. In fact, as of Dec. 27, more than 16,000 comments had been made, but many more were submitted on the final day. Source: 401kspecialistmag.com Rollover Recommendations Will be Fiduciary Advice. And What About Withdrawals? Podcast Take a quick dive into the exciting world of ERISA with Faegre Drinker benefits and executive compensation attorneys Fred Reish and Brad Campbell. In this quick-hit series of updates, Fred and Brad offer a high-level view of current trends and recent ERISA developments. This new episode looks at rollover recommendations that will be fiduciary advice, but what about withdrawals? Source: Spotlightonbenefits.com American Securities Association Says DOL Acting Secretary Cannot Finalize Fiduciary Proposal The American Securities Association filed a comment letter with the DOL arguing that the fiduciary proposal, also known as the retirement security proposal, is unlawful for a variety of reasons. The letter does not speak directly to the merits of the proposal, but it is a possible preview of many of the legal arguments that will arise in litigation if the rule is finalized. Source: Planadviser.com ARA Submits Comment Letter to DOL on Proposed Fiduciary Rule In their comment letter submitted to the Department of Labor on Jan. 2, 2024, the American Retirement Association expressed support for the department's proposed definition of "fiduciary invest. Advice" and amendments to PTE 2020-02. In the letter, they also shared several specific concerns and recommended revisions. Source: Asppa.org EBSA Rejects Requested Delay as Proposed Fiduciary Rule Moves Forward The DOL's Employee Benefits Security Administration issued a letter rejecting a request for delays in the rulemaking process concerning the expansion of the definition of fiduciary under ERISA. The Securities Industry and Financial Markets Association, American Retirement Association, and various other financial groups previously sent a joint letter to EBSA, requesting that the agency extend the comment period and delay the public hearing regarding the proposed fiduciary rule. Source: Hallbenefitslaw.com Court and Legal DOL Successfully Sues Employer for Misuse of Forfeitures Several lawsuits have recently been filed regarding the alleged misuse of forfeitures, but just a couple of months ago a plan was sued and lost a case brought by the DOL for not following the plan document's forfeiture provisions. Details of the case here. Source: Napa-net.org »» Click here for more Court and Other Legal Issues Legislative and Washington DC Bipartisan Bill Would Lower DC Plan Eligibility Age to 18 The Helping Young Americans Save for Retirement Act (S 3305) seeks to spur more savings by younger workers in DC plans. The bill would require sponsors of 401k and ERISA-covered 403b plans to let employees aged 18 through 20 contribute after they complete one year of service. However, employers could exclude these younger workers from receiving any employer-matching or nonelective contributions. Source: Mercer.com »» Click here for more on Legislative and Washington Actions Compliance and Regulatory EBSA Releases Form 5500 Series for 2023 Reporting New year, new forms. The Department of Labor's Employee Benefits Security Administration on Jan. 1 released Form 5500, Form 5500-SF, and Form 5500-EZ for reporting concerning the 2023 plan year. Source: Asppa.org SECURE 2.0 Grab Bag: Naughty or Nice? Mandatory Automatic Enrollment On December 20, 2023, the IRS reached into its bag of toys and bestowed upon the pension community a gift for the holidays: assorted guidance for certain provisions of the SECURE 2.0 Act of 2022. Included in this Guidance is information about several key provisions already in effect and several that are effective as of the New Year. The subject of this article is the required Automatic Enrollment provisions that become effective in 2025. Source: Ferenczylaw.com IRS Notice 2024-2 Provides Guidance for Multiple SECURE 2.0 Provisions On December 20, 2023, the IRS released guidance concerning certain provisions of the SECURE 2.0 Act of 2022. Notice 2024-2, which is in a Q&A format, is not intended to be comprehensive guidance but rather to offer assistance in commencing implementation of these provisions. The Treasury Department and IRS invite comments on the matters discussed in the Notice. Additional guidance is anticipated. Source: Voya.com IRS Extends Amendment Deadline for Recent New Laws The IRS announced in Notice 2024-2 that the amendment deadline for most qualified retirement plans, including 401k plans, for several recent pieces of federal legislation generally has been extended by up to one year. This comes on the heels of its November 8, 2023 announcement that the 2023 required amendments list would necessitate no year-end amendments for 401k plans. Source: Compliancedashboard.net How SECURE 2.0's Automatic Features Apply to MEPs, PEPs Multiple employer plans and pooled employer plans are subject to the same automatic enrollment and escalation requirements as other defined contribution plans, as outlined by SECURE 2.0. Any such plan adopted after December 29, 2022, must automatically enroll participants between 3% and 10% unless the participant elects otherwise, starting in 2025. Plans adopted before December 29, 2022, are grandfathered in. Source: Planadviser.com »» Click here for more Compliance and Regulatory Material Marketplace News Retirement Visions, LLC Joins Redhawk Wealth Advisors
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