Retirement Regulation

In advance of the IRS's procedure update on SECURE 2.0's expanded self-correction under the Employee Plans Compliance Resolution System, the agency has issued interim guidance.

The Labor Department's Spring agenda includes a proposal that would amend the regulatory definition of a fiduciary, taking into account practices of investment advisers and the expectations of plan sponsors and participants.

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.

While litigation is not widespread, it's important for plan sponsors to look at operations and shore up practices since there was action on 43 defined contribution cases during the first quarter of 2023, according to Mercer.