Retirement Regulation

According to the DOL, the new fiduciary rule levels the playing field for insurance agents, brokers, financial planners and registered investment advisors to adhere to a best interest standard when providing investment advice.

To be well-positioned for the possibility of a Department of Labor audit, plan sponsors need to watch out for common errors, which include late deposits of employee contributions into the plan, failure to implement employee deferral elections and failure to provide required notices.

The Federation of Americans for Consumer Choice's lawsuit states that the Department of Labor's new "rushed" fiduciary rule is similar to a proposal struck down by the federal appeals court a decade ago.

Employers can help employees save by automating and incentivizing emergency savings, but it's key to customize messaging that is unique to a specific employee demographic to increase the likelihood of them taking action.

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.