It's been nearly two years since SECURE 2.0 was enacted, yet many employers still have concerns and questions. SECURE 2.0 was designed to enhance retirement planning for businesses of all sizes, especially small and medium-sized businesses (SMBs). However, many employers are still unsure about its provisions. A recent UBS report reveals that less than half of employers are aware of which provisions in the retirement legislation are mandatory and which are optional. This is concerning, as a younger, financially savvy demographic is eager to plan for retirement, while an aging population is equally keen on securing their retirement plans. 

Adding to the complexity, the Department of Labor (DOL) recently finalized its Retirement Security Rule, which could affect how employers manage retirement plans and fulfill their responsibilities. Additionally, the DOL proposed procedures for the Retirement Savings Lost and Found database, enabling individuals to search for missing retirement plan benefits. While the proposed procedures place the burden of data collection and reporting on plan administrators, the finalization of these proposals will determine their full impact on small business owners.

Overall, this confusion among SMBs can create challenges for third party administrators (TPAs), affecting their workload and possibly hindering the ability to remain compliant. To ensure that SECURE 2.0 is implemented smoothly and without confusion, both SMBs and TPAs need to adopt a collaborative approach. Below are some key considerations and guidance for both parties.