By John Manganaro
RETIREMENT INDUSTRY ANALYSTS broadly agree the passage of the “SECURE Act” late last year marked the most significant change for the retirement industry in more than a decade.
The landmark legislation includes substantial adjustments to the regulatory systems controlling the operation of defined contribution (DC) plans, pension plans, individual retirement accounts (IRAs) and 529 college saving plans. It also creates a new marketplace for “open multiple employer plans (MEPs),” which will effectively mirror DC plans but will be open to joint participation by otherwise completely unaffiliated companies.
In the view of Ross Bremen, a partner in NEPC’s defined contribution (DC) practice, the SECURE Act’s lifetime income-focused provisions are probably paramount, though the open-MEPs discussion is also crucial.