Retirement Regulation

From the era of guaranteed lifetime pensions to the modern 401(k), pension risk transfers have become the linchpin connecting the past, present and future of retirement benefits – and allows firms to offload the burdensome legacy.

The ERISA Industry Committee, which represents the largest employers in the U.S., is calling on Congress to re-examine the premiums paid by companies that sponsor DB plans after recent federal pension bailouts.

Financial wellness has emerged as a game-changer – and the new retirement legislation is making new employer offerings, such as student debt relief or emergency savings funds, more cost-effective than ever to implement.

A bipartisan bill introduced in the Senate on Wednesday removes barriers that have discouraged companies from offering employer-sponsored retirement plans to Americans under 21 by lowering the participation age to 18.

After 18 financial groups asked for a 60-day extension for the DOL's proposed new fiduciary rule last week, the department told them it is not warranted, reiterating that comments are still due Jan. 2.

Benefits such as emergency savings accounts and student loan repayment are each offered in only about 5-10% of companies today, however, the new legislation paves the way for real progress to increase savings for more workers.

Joint research between J.P. Morgan and the Employee Benefit Research Institute uncovers new connections between financial wellness and retirement readiness – and new solutions for plan sponsors.

Under ERISA regulations, the fiduciary has 4 areas of duty: loyalty to the participants, prudence in running the plan, and the ongoing duties to diversify and minimize risk and to follow plan documents, unless they violate ERISA rules.