ASPPA

The American Retirement Association joined several high-profile retirement industry organizations in submitting a letter to Congress in late August urging them to finalize—and pass—the SECURE 2.0 Technical Corrections Act of 2023 as soon as possible. The letter highlighted several corrections the group believes Congress should address quickly, such as those related to automatic enrollment and PEPs/MEPs and the special tax treatment for distributions to terminally ill plan participants.

The Employee Retirement Income Security Act of 1974 (ERISA) turned 50 on Sept. 2. And so did its children—and one of them is the Pension Benefit Guaranty Corporation (PBGC). Before its creation, little protection was available for private-sector pension plans and those whom they served. ERISA included a provision creating the PBGC in order to better protect private-sector defined benefit plans—as well as plan sponsors and, ultimately, plan participants and their dependents and beneficiaries.

It’s a topic that might be widely presumed and is subject to frequent litigation, but a new analysis of the drivers of U.S.-based defined contribution recordkeeping costs suggests that higher balances may not necessarily lead to lowers costs.

Fiduciary Rules and Practices The so-called fiduciary rule has been stayed, and legal challenges regarding forfeiture reallocation are picking up. Nevin & Fred discuss what you should be doing…now. About a month ago two separate federal judges put a hold on the effective date (Sept. 23, 2024) of the Labor Department’s new fiduciary rule, indefinitely. In ordering the stay, United States District Judge Jeremy D.

The Congressional Research Service (CRS), in a primer on required minimum distributions (RMDs), highlights not only the rules with which one must comply, but also the effects of the enactment of the SECURE Acts. “Required Minimum Distribution (RMD) Rules for Original Owners of Retirement Accounts,” part of the CRS “In Focus” report series, provides a comprehensive discussion of RMD ages and deadlines, as well as reminders about the uses for those funds.

CalSavers, the state-run retirement program that provides coverage to private-sector employees in the Golden State whose employers have no retirement plan, has hit a landmark—its assets have reached $1 billion. California State Treasurer Fiona Ma made the announcement on Aug. 29. It took just five years for the program, which was launched on July 1, 2019, to reach that milestone.

The IRS has issued a fact sheet reminding businesses that starting in tax year 2023 changes under the SECURE 2.0 Act may affect the amounts they need to report on their Forms W-2. The SECURE 2.0 Act allows for additional features and incentives in various employer retirement plans to encourage use of these plans.

The windfall elimination provision (WEP) and the government pension offset (GPO), often targeted for adjustment or outright repeal, are again in congressional headlights. The WEP was intended as a means to remove a circumstance in which people who worked in both the public and private sectors would receive what some consider a “windfall” because since they worked in both sectors, they would receive both a public pension and Social Security benefits.

Noting that “the interests of financial professionals and retirement investors often conflict,” the Government Accountability Office (GAO) has some recommendations to share.

The ASPPA Annual Business Meeting will take place during the ASPPA Annual Conference on Sunday, Oct. 20, 2024, at 4:30 p.m. The annual business meeting will include addresses by ASPPA President Amanda Iverson and ASPPA President-Elect J.J. McKinney. It also will include a membership vote for the incoming at-large members of the ASPPA Leadership Council. The ASPPA Annual Conference will be held in Orlando, FL Oct. 20-23 at the Hyatt Regency Orlando.