Retirement Regulation

The House Financial Services Committee approved a bill that would permit CITs in all 403(b) plans to grant access to these lower-cost funds for nonprofit employees and public workers.

Issuing a new fiduciary rule is a "huge priority," as well as guidance on SECURE 2.0 and the ESG rule, said Lisa Gomez, assistant secretary of Labor for the Employee Benefits Security Administration, at a Spring Policy Forum.

In the defined contribution market, the first quarter of 2023 saw an spike in lawsuits and a drop in retirement confidence, however, Congress' main priority now is SECURE 2.0 implementation, according to Mercer.

For employers who wish to offer employees earning more than $145,000 a catch-up contribution option, they must first contact their plan recordkeeper to request the changes, which can sometimes take months to be implemented.

Many small business employers may be unaware that there are several retirement solutions available to them and that the new federal law covers 100% of the startup administrative costs for employers with up to 50 employees.

The new legislation is a significant step toward making retirement plans accessible to 57 million more people, similarly to the launch of automatic enrollment In the UK a decade ago, says Smart's global retirement report.