Products April 9, 2020

OneAmerica Waives Hardship Fees

The recordkeeper is making the move in response to the CARES Act.

Reported by

OneAmerica is waiving fees for hardship and COVID-19 distributions from 401(k) plans, effective April 7 through December 31.

“At OneAmerica, we recognize that this is a time of uncertainty for many of our participants,” says Sandy McCarthy, president of retirement services at OneAmerica. “We’re hopeful that this gesture will help to ease some of the burden.

In response to the Coronavirus Aid, Relief and Economic Security (CARES) Act, OneAmerica has chosen to automatically implement the COVID-19 distribution option for all plans that currently allow hardship withdrawals and has provided an opt-out for those plans that do not wish to offer the provision. The firm is also working with plan sponsors that currently do not offer hardship withdrawals but would like to do so.

“While we stress our belief that a withdrawal of any kind should be a last resort option, we understand that for some, it may be a necessary one,” McCarthy adds. “Providing this additional relief is just one of the ways OneAmerica is able to be there for participants when they need us the most.”

OneAmerica has also created a COVID-19 webpage, open to all participants and the general public.

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Products April 9, 2020

Securian Waives COVID-19 and Hardship Withdrawal Fees

The firm is also offering free fiduciary and wellness services to employers.

Reported by

Securian Financial is waiving all COVID-19-related 401(k) distribution fees for the retirement plans in which it is the recordkeeper. Additionally, it is permanently waiving fees on all hardship withdrawals.

For its existing full-service 401(k) customers, Securian will act as an Employee Retirement Income Security Act (ERISA) 3(16) fiduciary for distributions and loans under the Coronavirus Aid, Relief and Economic Security (CARES) Act for no additional cost. Securian will also waive the ordinary applicable plan amendment fee.

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Full-service customers will also receive a suite of wellness services for their participants, free of charge through the end of the year. This will include access to professional financial and grief counselors, self-service tools to prepare legal documents, such as a will, power of attorney or health care directive, and relevant education.

“Many of our retirement plan customers are struggling and need help during this challenging time,” says Ted Schmelzle, senior director of retirement solutions at Securian Financial. “We are here to support them and their employees by providing financial relief and one-on-one wellness counseling resources, at no cost, to those who need it most.”

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