PLANADVISER Weekend Newsdash
Week ending May 18th, 2018

Happy Friday, readers! This weekend’s mailing focuses on the always-timely topic of Client Service. As we report below, retirement plan advisers and service providers are making a concerted push on Capitol Hill to help propel forward a number of key legislative proposals that would allow clients to more confidently push their plan designs to the next level. From the establishment of open multiple employer plans to a new safe harbor for in-plan income annuity selection, the proposals have been put forward by bipartisan members of Congress and enjoy broad support among the adviser and plan sponsor communities. Below you will also find the latest reporting on how clients are managing student loan debt alongside their retirement investments; how ongoing education remains a top factor in earning client trust; and more. We hope you share some of what you read with a client or colleague.

Client Service
Industry Advocates Urge Lawmakers to Move Forward on Retirement Plan Proposals
This week, retirement industry sources testified before the House Subcommittee on Health, Employment, Labor, and Pensions, seeking to move forward proposed retirement plan legislation. The hearing focused on four bipartisan proposals that would amend ERISA to better meet the retirement plan needs of employees and employers with businesses large and small.  Read more >
DC Plan Industry Still Falls Short on Distribution Options
Looking across today’s DC plan marketplace, researchers suggest it is still much more common to see plan designs that are tailored to drive retired or terminated participants out of the plan. Read more >
Parents Keeping College Savings Separate From Retirement Savings
Only 10% plan to tap their retirement savings to help fund their child’s college education. Read more >
Millennials Increasingly Embrace Roth and Traditional IRAs
The percentage of people who contributed to their Fidelity IRA in Q1 2018 increased 14% over a year ago; among Millennials, IRA contributions increased even more. Read more >
Technology and Retail Clients Most Burdened by Student Debt
Data provided by CommonBond shows that workers in the technology and retail industries are most straddled with student loan debt; even workers in industries less impacted by student debt say they believe employers should help. Read more >
Education a Top Factor in Gaining Retirement Plan Participants’ Trust
“This study shows that for financial firms who want to improve retirement savings outcomes must evolve their role from just account providers to trusted partners that people can turn to for help on holistic financial wellness,” NARPP says. Read more >
MOST POPULAR STORIES
Stimulus Bill Extends Some Provisions of the CARES Act

It also provides a way for retirement plan sponsors to avoid a partial plan termination.

Coronavirus Hardship Withdrawals, Taxes and Your Retirement Plan Clients
Coronavirus-related withdrawals made in 2020 were a financial lifeline for some, but they could also turn into a major tax headache for others.
Warn Your Clients: Don’t Abuse Coronavirus Hardship Withdrawals
Though retirement plans can allow individuals to self-certify that they qualify for a penalty-free coronavirus-related distribution, should the IRS discover otherwise during a future audit, a participant can be subject to substantial penalties.
Once They Catch On, PEPs Could Grow Exponentially
The current hesitancy over how they will take shape will be overcome by appreciation among advisers and sponsors alike at the prospect of expanding retirement coverage, sources say.
Many Near-Retirees Don't Understand Social Security Benefits

More than one-third failed a basic Social Security quiz administered by MassMutual.

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