Retirement Regulation

The new Saver's Match program launches in 2027, as a provision of SECURE 2.0, and allows low-income employees to receive a 50% federal matching contribution of up to $1,000, in addition to any employer match.

On Tuesday, the Department of Labor finalized its Retirement Security Rule that updates the definition of an investment advice fiduciary, while critics say millions could now lose access to professional financial guidance.

In 2024, a provision in the SECURE 2.0 legislation permits an employer that is not sponsoring a retirement plan to offer a starter 401(k) or safe harbor 403(b) plan to its employees that is exempt from certain nondiscrimination requirements.

The new bill is the latest attempt to restrict the use of environmental, social and governance factors in retirement plans by specifying that fiduciaries may consider only "risk and return" factors when making investment decisions.

The White House Office of Management and Budget has concluded its review of the Department of Labor's new Retirement Security Rule, indicating that the controversial new rule will become final sometime this Spring.

The DOL's latest iteration, proposed in 2023 and soon to become final, will ensure that advisors prioritize their clients' best interests when recommending investments, prompting employers to make necessary adjustments.

While the DOL continues to try to refine its fiduciary rule, with the latest iteration sent to the Office of Management and Budget for review last month, there are several best practices that protect plan sponsors as well as participants.

The Washington Saves program, which will take effect in 2027, was signed into law late last week, and will require certain employers that do not offer a retirement plan to enroll employees into the state-run auto-IRA program.