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2021 Retirement Business Milestones in Month-to-month Recap

Share this…FacebookPinterestTwitterLinkedin The coronavirus pandemic however, 2021 was an eventful 12 months within the worker advantages/retirement plans house.  In case…

By Staff , in Investments , at January 5, 2022

401k Court Cases

The coronavirus pandemic however, 2021 was an eventful 12 months within the worker advantages/retirement plans house.  In case you missed it, here’s a month-by-month recap, as not too long ago reported in BenefitsPro:

January:  401(ok) lawsuits soared, and the chance unfold from bigger employers, the place it was largely concentrated, to smaller ones.

February:  Range, fairness, and inclusion (DEI) took middle stage as company disclosures revealed an absence of individuals of coloration in government positions, on boards, and in sure industries, corresponding to monetary companies.

March:  Pupil mortgage debt soared to file ranges.  At the moment, greater than 44 million Individuals owe some scholar debt, to the tune of $1.5 trillion.  Extra employers are contemplating providing scholar mortgage compensation help, many within the type of matching contributions to retirement plans as workers contribute towards paying down their debt, killing two birds with one stone.  Federal forgiveness and deferment initiatives are necessary to look at as 2022 unfolds.

April:  The Division of Labor supplied cybersecurity tips for retirement plans.  Advisors sought alternative to supply extra worth on this enviornment in an trade more and more underneath payment stress.

Might:  State-sponsored retirement plans proliferated.  Particularly, states started to supply or put in place the infrastructure to supply retirement plans for small enterprise workers who didn’t beforehand have entry to at least one.  Pooled employer plans (PEPs) additionally appeared on plan sponsors’ radar.

June:  Annuities in retirement plans materialized as extra of a actuality, thanks partly to the SECURE Act of 2019.

July:  Recordkeeper consolidation continued apace, and Empower – one of many largest recordkeepers – introduced it was buying Prudential’s retirement enterprise.

August:  2022 Social Security COLA hypothesis abounded as pundits puzzled how giant that adjustment can be.  As we later came upon, beneficiaries acquired a whopping 5.9% enhance, serving to to strengthen a wobbly three-legged retirement stool.

September:  Worker advantages/insurance coverage firms and retirement advisory corporations continued to mix.  This ongoing M&A is a development to keep watch over within the coming 12 months.

October:  Numerous older staff retired early from the workforce, spurred by increased residence and funding values, whereas assured earnings in retirement plans gained extra floor.

November:  Rampant consolidation continued to drive down charges, significantly for advisor options.

December:  Feedback continued on the DOL ESG rule, and President Biden prolonged the pause on scholar mortgage repayments to Might 2022 – excellent news for America’s scholar debt holders, albeit short-term.

2022 will possible be one other fascinating and event-filled 12 months because the trade morphs and shifts in new instructions.  Keep tuned right here as we convey you the most recent developments.

Steff Chalk

Steff Chalk

Steff C. Chalk is Government Director of The Retirement Advisor College, a collaboration with UCLA Anderson College of Administration Government Training. Steff additionally serves as Government Director of The Plan Sponsor College and is present college of The Retirement Adviser College.

Steff Chalk

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