Defined Contribution

The Employee Benefits Security Administration (EBSA) recently announced that about half of the $1.4 billion amount came from enforcement actions ($844.7 million) and 30% came from informal complaint resolutions ($444.1 million).

The legislation would require firms with 10+ employees to automatically enroll all full-time and long-term part-time employees in an automatic IRA or 401(k) plan, allowing workers to decline to participate at any time after enrollment.

The new rule aims to rein in any predatory practices around rollover recommendations from commission-based advisors, but employers can protect themselves by offering objective, retirement planning advice inexpensively.

In 2024, a provision in SECURE 2.0 takes effect that provides a new option tying student debt repayments to 401(k) plans but clearly communicating to employees why and how to opt into the new program is key to adoption.

The new legislation represents a landmark in the evolution of retirement planning, benefiting employees in unique situations – facing student debt, saving for college or suffering from domestic abuse.

Employees may not be aware of the scale of the offerings in SDBAs, which is why practical education is key to providing both personalization and desired outcomes for retirement plan participants, says a new Schwab report.

TIAA Institute's new State of Financial Preparedness report raises questions about whether or not incoming retirees will enjoy financial security, particularly as lifespans continue to lengthen and the economy remains tumultuous.

Employees are demanding a wider range of benefits and changes that fit new ways of thinking about work and benefits, including more flexibility around remote work and expanded choices in their benefit plans.