Defined Contribution

To stop the "leakage" of retirement cash-outs when employees switch jobs, the Department of Labor proposes new rules regarding fees under SECURE 2.0, which is aimed at expanding auto-portability transactions.

Announced by the administration on Friday, the latest debt relief that affects teachers, nurses and firefighters comes on the heels of an announcement earlier this month fast-tracking the Saving on a Valuable Education (SAVE) plan.

Unlike emergency savings accounts that employers have rolled out over the past few years, these new SECURE 2.0 pension-linked accounts have auto-enrollment but employees must be given the chance to opt out.

The American Retirement Association estimates that 19 million additional workers will gain access to a workplace retirement plan through SECURE 2.0's Starter 401(k) provision alone.

The IRS has issued initial guidance to help plan sponsors implement the new pension-linked emergency savings accounts - and is open to comments in order to limit participant abuse of sidecar account matching contributions.

To raise employee awareness of benefits, firms could highlight one benefit a month and explain its value in dollar terms in a e-newsletter or devise a personalized benefits summary for each employee's annual performance review.