Defined Contribution

Federal Reserve Chair Jerome Powell said the committee decided to leave rates unchanged following 10 straight hikes while indicating that at least two more increases might be necessary in 2023 - and possibly as soon as July.

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.

Thanks to a new SECURE 2.0 provision that allows employers to offer financial incentives to start saving for retirement, participants can now earn up to $250 if they contribute to a plan for one year under a new program.

While 83% of employers offer online tools on how to meet retirement readiness goals and 69% offer financial wellness services, only 27% set retirement readiness objectives for participants, according to PGIM DC Solutions.