SECURE Act 2.0 Passed Unanimously by Ways and Means Committee
A rare unanimous affirmative voice vote by the Ways and Means Committee allows the SECURE Act 2.0 to be considered by the full House of Representatives.
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The Ways and Means Committee of the U.S. House of Representatives voted unanimously Wednesday afternoon to advance the Securing a Strong Retirement Act for future consideration by the full chamber.
Led by Ways and Means Committee Chairman Richard Neal, D-Massachusetts, and Ranking Member Kevin Brady, R-Texas, the committee members spoke one after another in praise of the legislation, which they refer to as the “SECURE Act 2.0,” a reference to 2019’s Setting Every Community Up for Retirement Enhancement (SECURE) Act. They used words such as “joy” and “delight” to describe their feelings about the advancement of the bill, which has been the recipient of significant support from all facets of the retirement planning industry.
Sponsors Should Understand How to Use DOL Guidance on Missing Participants
Industry experts point out that not all suggestions from the DOL work for every plan sponsor, and they share tips for implementing the guidance and list unanswered questions.
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Earlier this month, the U.S. Department of Labor (DOL)’s Employee Benefits Security Administration (EBSA) issued guidance to help retirement plan fiduciaries locate and distribute retirement benefits to missing or nonresponsive participants.
The guidance included three parts. A page titled “Missing Participants – Best Practices for Pension Plans” describes a range of best practices for fiduciaries of retirement plans to consider. Compliance Assistance Release 2021-01 reveals the information EBSA staff request from plan sponsors and the errors they look for during investigations under the Terminated Vested Participants Project for defined benefit (DB) plans. Field Assistance Bulletin 2021-01 authorizes plan fiduciar
Aliya Robinson said online searches for participants with common names is problematic for employers.
Newly issued guidance from the Department of Labor offers retirement plan fiduciaries a list of best practices for locating missing participants and insight into how it approaches investigations on the matter, but left stakeholders wanting more and expressing concerns about the process. It s nice that the department released a list of things that they ve identified as best practices, but it s frustrating that they haven t linked it to the statute of ERISA, it s frustrating that it comes after seven years of investigations, and it s frustrating that even after all of this they couldn t put together a road map that says, We understand that not everybody is going to be found, but we don t want plan fiduciaries spinning their wheels for days and hours trying to figure out what to do, said Kevin Walsh, a Washington-based principal at Groom Law Group.
A Few Words from Incoming Union & Employee Co-Chair John Harney
By: John R. Harney, O’Donoghue & O’Donoghue, LLP, Washington, D.C. Share:
I am humbled and honored to have become the Union & Employee Co-Chair of the Employee Benefits Committee, effective September 2020. I stand on the shoulders of those who have preceded me, most recently Ben Eisner, whose leadership has been crucial to the success the EBC has enjoyed these last three years. He set a daunting standard to follow. I look forward to working with my fellow Co-Chairs, Cassie Ayeni, Aliya Robinson and Joanne Roskey to build on their work and that of prior Co-Chairs and EBC members who have made this dynamic Committee so successful.
DOL tells 401(k) sponsors how to find ‘missing’ participants
That guidance comes years after it was requested by industry groups. The Department of Labor regularly investigates employers for the issue of missing participants, but until now it hadn t provided clear steps on how to remedy the problem.
January 13, 2021 3 MINS
The DOL on Tuesday told retirement plan sponsors how to avoid getting in hot water over plan participants they’ve lost track of, including guidance on how employers should try to locate such “missing” participants.
That guidance comes years after it was requested by industry groups. The Department of Labor regularly investigates employers for the issue of missing participants, but until now it hadn’t provided clear steps on how to remedy the problem.