Review These Top 3 Retirement Articles Before 2021 Is Over
DECEMBER 7, 2021
Were the issues you faced as a plan sponsor in 2021 similar to those of other retirement plan decision makers? Before you dive into 2022, plan sponsors should take a moment to consider the challenges and decisions made over the past year.
During 2021, employers found these three USI retirement consulting insights articles to be most beneficial, and shared them widely via social media. Make sure you’re in the know, as these topics continue to draw attention from employers and executives.
Running out of money in retirement is a real fear for many workers, as Americans are living about 30 years longer, on average, than a century ago.
Employers now recognize that employees’ financial wellness — or the lack thereof — directly impacts workplace productivity and the organization’s bottom line. In our October article, we shared eye-opening statistics that reveal retirement readiness is not only an employee issue but also a business issue. It is estimated that employers spend over $50,000 per employee each year the employee delays retirement. Employers work with USI Consulting Group to understand the significant costs related to employees delaying retirement, to evaluate retirement plans, and to implement steps that can better prepare workers for retirement.
Our May article highlighted policy changes made in early 2021 by the Internal Revenue Service (IRS) and the U.S. Department of Labor (DOL).
Topics covered included the IRS news release reminding U.S. retirement plan participants of changes related to required minimum distributions (RMDs), such as the RMD age changing from 70½ to 72 (effective after December 31, 2019) as part of the Setting Every Community Up for Retirement Enhancement (SECURE) Act.
In addition, the article offered a concise overview of the DOL’s announcement about its reversal on a final rule that that affects fiduciaries’ duties, stating until it issues further guidance, it will not be enforcing the final rules on “Financial Factors in Selecting Plan Investments” and “Fiduciary Duties Regarding Proxy Voting and Shareholder Rights.”
A power of attorney (POA) is a formal written grant of authority, governed by state law, from an individual to their agent, allowing the agent to act on the individual’s behalf in financial or other matters. Retirement plan administrators often see general POAs, and must decide if the agent’s completion of a loan application or benefit election form is authorized by the POA.
As we discussed in our August article, it’s important for fiduciaries to have an established POA compliance review. Failing to appropriately determine the validity of a POA can leave a retirement plan at risk. USI Consulting Group can work with you to ensure your plan’s POAs are handled appropriately, which can help you avoid time-consuming and expensive events.
Get the latest retirement insights every month in 2022: Sign up for USI’s Executive Series (if you aren’t already receiving it). If you have any questions or would like additional information, please contact your USI Consulting Group representative, email us at firstname.lastname@example.org, or visit our website at www.usicg.com.