Retirement Regulation

As plan sponsors continue to evaluate the optional provisions of SECURE 2.0, many have selected which ones best align with their participants, according to Fidelity Investments.

The Securities Industry and Financial Markets Association (SIFMA) & Financial Services Institute (FSI) argue that the rule — while intended to strengthen investor protections — would actually limit their access to retirement products.

Pre-retirement withdrawals is the single biggest factor causing wealth disparities, plus the fact 57 million American workers do not have access to a retirement savings plan at work, according to a recent Morningstar webinar.

The Department of Labor has responded to one of two court challenges to its soon-to-be-effective fiduciary rule that updates the definition of a fiduciary by arguing that the new rule is lawful and will protect investors,

With 90-plus provisions, SECURE 2.0 is a complex piece of legislation, and there is still some confusion among plan sponsors about tax credits to cover administrative costs, as well as which provisions are optional or mandatory.

The ERISA Industry Committee wants the DOL to scale down what it calls "excessive amounts" of participant information for its SECURE 2.0-mandated Retirement Savings Lost and Found database to be launched in 2024.