Retirement Regulation

The new legislation will remove barriers for many small businesses, however, some are reporting they don't have the bandwidth or resources to deal with these benefit issues, according to a Fidelity report.

The ERISA Industry Committee, an employer advocacy group, implored the IRS in a letter to clarify how sponsors can implement new SECURE 2.0 features - and also offered recommendations for improving health care benefits.

The sweeping SECURE 2.0 legislation aspires to bridge the gap through incentives and mandates, however, a public policy organization is proposing a new retirement saving program modeled after the federal Thrift Savings Plan.

While litigation is not widespread, it's important for plan sponsors to look at operations and shore up practices since there was action on 43 defined contribution cases during the first quarter of 2023, according to Mercer.

Benefits groups support the proposal, which would require retirement plans to use money forfeited by participants when they leave an employer before the end of a vesting schedule, starting in 2024..

The firm cited a "technical issue" in a letter of acceptance to the Financial Industry Regulatory Authority for overstating projections on customer statements for nearly a year and failing to quickly address customer reports.

The House Financial Services Committee approved a bill that would permit CITs in all 403(b) plans to grant access to these lower-cost funds for nonprofit employees and public workers.

Issuing a new fiduciary rule is a "huge priority," as well as guidance on SECURE 2.0 and the ESG rule, said Lisa Gomez, assistant secretary of Labor for the Employee Benefits Security Administration, at a Spring Policy Forum.