Plan sponsors must remain vigilant in their approach to retirement plan benefits legal compliance, and with so much going on both in and out of the legislature, the content of this webinar is sure to provide actionable recommendations to run a compliant plan that has the ability to attract and retain top talent while being forward-thinking in its approach to plan design and risk mitigation.

The HBL team covers Secure Act 2.0, the DOL’s increasingly vigilant enforcement of cyber security requirements, updates to the Employee Plans Compliance Resolution System (EPCRS), forms 5500 changes, missing participants issues, and more.

HBL Managing Partner Anne Tyler Hall and Lead ERISA Counsel Phil Koehler present a comprehensive retirement plans legal compliance update for plan sponsors, in-house and general counsel, and retirement plan professionals….(read more)

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A Critical Legal Compliance Update on Retirement Plans

Retirement plans are a vital aspect of any working individual’s financial stability. These plans provide individuals with a means to save for their future and ensure a comfortable retirement. However, it is essential to stay abreast of the legal compliance requirements surrounding retirement plans to avoid any legal troubles. In this article, we will discuss a critical legal compliance update on retirement plans that everyone needs to be aware of.

One of the most significant changes in retirement plan regulations occurred with the enactment of the Setting Every Community Up for Retirement Enhancement (SECURE) Act in December 2019. This Act introduced several modifications to the legal requirements for retirement plans, aiming to improve access to these plans and make retirement savings more accessible for all individuals.

One significant change brought about by the SECURE Act is the increase in the age limit for required minimum distributions (RMDs) from retirement plans. Before the Act, individuals were required to start taking RMDs from their retirement plans at the age of 70½. However, the SECURE Act increased the age limit to 72, allowing individuals to continue accumulating funds in their retirement plans for an additional 18 months before taking distributions.

Another critical aspect of the SECURE Act is the introduction of new provisions allowing part-time employees to participate in employer-sponsored retirement plans. Previously, part-time employees were often excluded from these plans. However, with the SECURE Act, employees who work at least 500 hours each year for three consecutive years must be allowed to contribute to their employer’s retirement plan.

Additionally, small businesses should also take note of the multiple employer plans (MEPs) provision of the SECURE Act. Through this provision, unrelated employers can join together and create MEPs, allowing them to enjoy the benefits of economies of scale and reduce administrative expenses. This change aims to encourage more small businesses to offer retirement plans to their employees and improve retirement saving opportunities.

The SECURE Act also made it easier for employers to include annuity options within their retirement plans. Annuities provide individuals with a steady income stream during retirement, which can be highly beneficial for those concerned about outliving their savings. However, including annuities within retirement plans requires careful consideration, and employers must ensure they comply with the legal requirements when offering these options to their employees.

Furthermore, employers should be aware of the potential consequences of failing to comply with retirement plan regulations. Non-compliance can result in significant penalties, audits, and legal actions. Therefore, it is crucial for employers to regularly review their retirement plans and ensure they align with the latest legal requirements to mitigate any potential risks.

In conclusion, staying updated with the latest legal compliance requirements surrounding retirement plans is imperative for both employers and employees. The SECURE Act introduced significant changes that impact various aspects of retirement plan regulations, such as age limits for RMDs, inclusion of part-time employees, the formation of MEPs, and the inclusion of annuity options. It is essential for employers to familiarize themselves with the new provisions and review their retirement plans to ensure compliance and avoid any legal issues. By doing so, both employers and employees can safeguard their financial futures and enjoy a comfortable retirement.