Fiduciary INSIGHTS on retirement plans
Welcome to Fiduciary Insights, the monthly newsletter that keeps you in touch with issues, trends, events, and insights of significance to individuals connected with the retirement plan industry. The articles have been carefully selected from a variety of high quality sources.
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Automatic features help encourage higher average savings rates, but a study by the National Bureau of Economic Research (NBER) looks at factors that can mitigate their effect.
Specifically, the study found that opting out of automatic enrollment and escalation; the propensity to save absent automatic features; and losing unvested employer contributions and cashing out an account upon leaving employment; all reduced the positive impact of automatic features.
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There are currently 20 U.S. states that have enacted retirement saving programs for private sector workers, with more in the policy pipeline to potentially come online next year, according to Georgetown University’s Center for Retirement Initiatives.
When these programs first started coming online—OregonSaves was enacted in 2015 and launched in the second half of 2017—the retirement industry had some trepidation about state-run plans taking over from private offerings.
But early research has indicated that, rather than supplant private defined contribution plans, state mandates may actually be further bolstering private uptake.
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Collective investment trust provider Great Gray Trust Co. LLC and two law firms argue against consumer groups seeking to halt a bill that would let 403(b) plans invest in CITs.
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Key provisions of the Tax Cuts and Jobs Act (TCJA) of 2017 are set to expire at the end of 2025. During 2025, Republican-controlled government will likely pursue extensions of those cuts and may look to retirement tax incentives for an offset.
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