Retirement Regulation

IBM's recent announcement to switch to a "hybrid" model of defined benefit plan could make the case to bring back a version of the classic retirement benefit, which could be a powerful tool for retention in a tight labor market.

From the era of guaranteed lifetime pensions to the modern 401(k), pension risk transfers have become the linchpin connecting the past, present and future of retirement benefits – and allows firms to offload the burdensome legacy.

The ERISA Industry Committee, which represents the largest employers in the U.S., is calling on Congress to re-examine the premiums paid by companies that sponsor DB plans after recent federal pension bailouts.

Financial wellness has emerged as a game-changer – and the new retirement legislation is making new employer offerings, such as student debt relief or emergency savings funds, more cost-effective than ever to implement.

A bipartisan bill introduced in the Senate on Wednesday removes barriers that have discouraged companies from offering employer-sponsored retirement plans to Americans under 21 by lowering the participation age to 18.

After 18 financial groups asked for a 60-day extension for the DOL's proposed new fiduciary rule last week, the department told them it is not warranted, reiterating that comments are still due Jan. 2.