Ever since the 2019 passage of the Setting Every Community Up for Retirement Enhancement (SECURE) Act, questions have been raised about what a potential SECURE Act “2.0” could look like as lawmakers continue to focus on reshaping the nation’s retirement system.
The central objective of the SECURE Act is to help Americans save for retirement by providing incentives and easing restrictions for businesses so that they can offer a retirement plan for their employees. In many ways, the SECURE Act 2.0 is expected to include policies that aim to further those goals and bolster the retirement readiness of working Americans. While the bill is likely to evolve and change as it makes its way through the halls of congress, here are a few policy points being considered:
The SECURE Act 2.0 Considerations
• Required automatic enrollment for all small businesses with a 401(k) and 403(b) plan; employees who do not wish to participate can opt out
• An increased required minimum distribution age from 72 to 75
• Employees can make contributions towards paying off student loans, which will be eligible for employer matching
• Part-time employees could participate in plan-sponsored plans (for the first time ever)
• An increase to the “Saver’s Credit” that provides millions of low and middle-income individuals with an incentive to invest in their retirement each year
• Start-up businesses with up to 100 employees can be eligible for a tax credit totaling 100% of administrative costs, capped at $5,000 every year.
The proposed mandatory auto-enrollment provision is of particular interest given overwhelming data suggesting that auto-enrollment works. According to a recent study 92% of participants hired under auto-enrollment remained in their plan, compared to just 29% of participants in voluntary enrollment plans. Why wait for new legislation? PCS Retirement is ready to assist you and your plan sponsors make any changes needed to ensure the plan is optimized and meeting the needs of participants. At PCS Retirement, adding auto-enrollment is always free of charge and we are happy to assist with all of the required monitoring and reporting needed to keep auto-enrollment working accurately and efficiently
Meet 401(k) Simplified, the powerful PEP solution you need to know about
Since the passage of the SECURE Act in 2019, many retirement plan providers have been grappling with how to build a Pooled Employer Plan (PEP) solution that equips advisors with a state-of-the-art platform that delivers real solutions to small employers. Today, we have the answer with 401(k) Simplified.
What is a PEP?
If you aren’t familiar with pooled employer plans, here’s a quick breakdown. Essentially, PEPs allow employers of any size and in any industry to pool their retirement plans into a single 401(k) plan. In doing so, the pooling of assets helps smaller employers benefit from the economies of scale and lower plan costs. It also gives smaller employers access to more efficient investments, administrative services, and fiduciary solutions that would otherwise be cost-prohibitive.
How 401(k) Simplified Works
401(k) Simplified is a retirement plan solution from PCS Retirement that allows unrelated employers to pool retirement plan assets into a single plan. Each employer retains their individual identity, but benefits from improved access to funds and fiduciary services typically enjoyed by larger plan sponsors.
Benefits to you and your clients
• A simplified, low-cost fee structure
• Elevate your brand with custom branding
• Broaden your retirement plan book of business with a powerful small market solution designed for start-up, micro, and small plans
• Reduce fiduciary responsibility and administrative burden for your clients with ERISA 3(16) administrative fiduciary coverage
• Payroll integration with over 40 leading payroll providers
• Comprehensive plan sponsor level reporting
• Help participants close the retirement gap with access to financial planning tools like Wealth Studio and RetireOnTime
As we have seen over the last few years, state legislatures across the nation are beginning to mandate private retirement plans or implement state-run plans for small and mid-sized businesses. Our 401(k) Simplified is an ideal way to get in-front of a mandate and provide a full-featured retirement plan for organizations that are looking to graduate from a SIMPLE IRA plan or need a new plan.
If you’re ready to learn more about 401(k) Simplified and whether it’s the right fit for your business and your clients, reach out to your relationship manager or contact us at sales@pcscapital.com. To locate your regional vice president, click here.
Hear it here first: Upcoming webinars on our latest product and service enhancements
We’ve been busy this year working on a number of exciting enhancements designed to help you grow your retirement plan business, streamline wealth management, and reach new markets. Read on for a sneak-peek of what’s coming and register for our August 10th and 24th webinars.
Significant Technology Enhancements Designed to Assist your Retirement Plan Practice
The Advisor Lab™ Enhancements
Included in our Advisor Lab enhancements is a powerful lead generation tool that can help you locate new opportunities in your area. With the ability to manage plan investments, generate proposals, or generate retirement plan leads, Advisor Lab is the complete package for maintaining and growing your retirement plan business.
Leading the Way with Wealth Management Integration
Hear about how we’re making the convergence of wealth management and retirement plans seamless with our wealth management integration capabilities, including our recent integrations with BlackDiamond and Orion.
Our Individual Account Offerings
Our Aspire platform continues to be the premier solution for advisors that work in the individual and K-12 retirement plan space – 403(b)wise even calls Aspire the Swiss Army Knife of K-12 403(b) plans! That’s why it’s available to over 7,000 school districts and 92,000 educators across the nation. If you’re looking to grow your footprint in this space or simply need ideas on how to get started, you’ll want to join us for our upcoming webinars.
Webinar Registration
Register today to hear first-hand how these enhancements can have a powerful impact on your business. We’re offering two sessions so you can choose what works best for your busy summer schedule. Registration links here:
August 10 – 4:00pm Eastern: The Latest Enhancements from PCS Retirement: Summer 2021 Edition
August 24 – 4:00pm Eastern: The Latest Enhancements from PCS Retirement: Summer 2021 Edition