OMB Concludes Fiduciary Rule Review, DOL Release Expected Soon
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Items of Special Interest to Advisers and Other Service Providers OMB Concludes Fiduciary Rule Review, DOL Release Expected Soon The White House's Office of Management and Budget has completed its review of the Retirement Security Rule, and it is expected to be released by the Department of Labor by the end of the month, according to reliable sources. The OMB concluded its review and removed the rule from its regulatory review dashboard on April 10. Source: Napa-net.org Gomez: DOL Fiduciary Rule Seeks to "Level the Playing Field" The bottom line with the DOL's controversial fiduciary rule, currently under review at the White House Office of Management and Budget, is that it seeks to level the playing field to protect retirement investors. That's what Lisa Gomez, the DOL Assistant Secretary for EBSA, told attendees during the opening general session at the 2024 NAPA 401k Summit. Source: 401kspecialistmag.com The New Fiduciary Rule: Changes to PTE 2020-02 Affecting Financial Institutions The proposed regulation will cause many more people and firms to be fiduciaries when they make "investment" recommendations to retirement investors. This article by Fred Reish discusses the changes that affect financial institutions. Source: Fredreish.com Finalist Presentations Do's and Don'ts Have you ever prepared extensively for a finalist presentation, only to find yourself and your team in second place? Panelists during day two of the NAPA 401k Summit reviewed what retirement plan advisors are missing in their preparation leading up to those meetings, and how they can win big in the next one. Source: 401kspecialistmag.com The proposed regulation will cause many more people and firms to be fiduciaries when they make "investment" recommendations to retirement investors. This article by Fred Reish discusses the changes that affect financial institutions. Source: Groom.com DOL Issues Final Changes to the QPAM Exemption The final amendment imposes a variety of new requirements with potential impacts on both investment managers currently relying on (or those considering relying on) the QPAM Exemption and financial firms. They are summarized in this article. Source: Dechert.com DOL Finalizes Tighter Standards for QPAMs On April 2, 2024, the DOL finalized an amendment to prohibited transaction class exemption 84-14, expanding the categories of disqualifying criminal conduct for qualified professional asset managers, commonly referred to as QPAMs. The final amendment also added new compliance requirements to the Exemption. Source: Debevoise.com Fiduciary and Plan Governance Investment Menus and Fiduciary Considerations Plan Sponsors have a fiduciary duty to select and monitor investments in a retirement plan. Ensuring that an investment menu is cost-efficient and appropriate for the given employee population is a large component of this responsibility. The wide array of available investment options and complex fiduciary requirements can make this challenging. In particular, it may be difficult to determine whether adding a new trending asset class makes sense for a retirement plan and its participants, or whether it is more prudent to steer clear. Source: Spconsultants.com »» Click here for more Fiduciary and Plan Governance Material Insight: Studies, Research, Analysis, and Papers Heightened Activity on CITs in the Wake of SECURE 2.0 In "Pensions and Individual Retirement Accounts (IRAs): Investment Issues," the CRS provides an overview of pension investment issues relevant to both public and private-sector retirement plans. It also identifies and synthesizes key retirement plan issues that have received congressional scrutiny and action. CITs are among the matters it addresses that are relevant to private-sector coverage. Collective investment trusts are getting greater attention and activity in the wake of SECURE 2.0. Source: Asppa.org Nearly 2 in 3 Americans Worry More About Running Out of Money Than Death Nearly two in three Americans say they worry more about running out of money than death with concerns about inflation, Social Security, and taxes contributing to the fear, according to the 2024 Annual Retirement Study from Allianz Life. The worry of running out of money has increased in recent years. In 2024, 63% say they worry more about running out of money than death, up from 57% in 2022. Gen Xers are the most likely to say this with 71% more worried about running out of money than death, compared to 64% of millennials and 53% of boomers. Source: Allianzlife.com 401k Balances Rise 14% in 2023, but Participation Rate Falls Average 401k account balances at plans recordkept by T.Rowe Price increased by 14% over the past year to $115,000, according to the Baltimore-based company's annual benchmarking report on 401k plan design and participant behavior. Source: 401kspecialistmag.com Retirement Confidence Keeps Dropping Amid Global Uncertainty In both domestic and global events, retirement advisors don't know what to expect and it's hurting their faith in the economy. This month, retirement confidence continued to sink, according to Arizent's latest Retirement Advisor Confidence Outlook, a monthly survey that measures retirement confidence on a scale of minus-100 to 100. Source: Financial-Planning.com How the Saver's Match Could Kick-Start Financial Inclusion: Study A new survey-driven analysis of the Saver's Match enacted under the SECURE 2.0 Act finds that the program has the potential to be a "force multiplier" in helping lower-to-middle-income Americans boost their retirement savings prospects. More specifically, the analysis conducted by Boston Research Technologies and Retirement Clearinghouse reveals that the program can help the "under-saved" and under-served workers in at least three measurable ways. Source: Napa-net.org QDIA Update: Essential Insights and Emerging Trends Target-date offerings continued to garner the lion's share of defined contribution assets and are now estimated to make up over 40% of the assets in 401ks. Personalized target-dates and dual-default solutions blending target-dates and managed accounts have evolved. Managed account solutions continue to see increased adoption by Plan Sponsors, but participant utilization remains low. Source: Fiducientadvisors.com »» Click here for More Studies, Research, and White Papers Cyber and Plan Security Retirement Plan Access and Fraud Prevention Considerations As a significant investment for many Americans, retirement plan assets are an attractive target for cyber hackers globally. Plan participants need to take common-sense measures to safeguard their accounts. Plan sponsors face the dual challenge of providing online access to participants' retirement plans while keeping their information secure. Implementing and maintaining a proactive cybersecurity strategy is key for both parties. Here are a few items to consider. Source: Spconsultants.com »» Click here for more on Cybersecurity Issues Compliance and Regulatory Does Your Retirement Plan Need a 'PLESA'? Pension-Linked Emergency Savings Accounts are a special retirement plan feature created under SECURE ACT 2.0. PLESAs, which provide a flexible savings opportunity for non-highly compensated employees, can be added to certain defined contribution plans. On January 12, 2024, the IRS released Notice 2024-22 relating to PLESAs, and the DOL released FAQs related to PLESAs. Some of the details regarding PLESAs are highlighted in this article, as clarified by the recent Notice and FAQs. Source: Pbwt.com »» Click here for more Compliance and Regulatory Material Marketplace News Fiduciary Training for Female Advisers
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