Building on the passage of the Coronavirus Aid, Relief and Economic Security (CARES)_ Act, Principal and Wells Fargo Institutional Retirement & Trust (IRT) are waiving participant-paid distribution and loan origination fees for participants taking tax-favored withdrawals, hardship withdrawals or loans from their employer-sponsored retirement accounts.
Additionally, retirement plan sponsors will have fees waived for plan amendment changes to allow participants to access these programs or to document a reduction or removal of employer contributions.
To help Principal insurance policyholders—individuals and employers—prevent a lapse in coverage, grace periods for premium payments have been extended. And, for employers who hold group benefits coverage, the company is temporarily halting any rate increases. This is for employers with fewer than 500 employees with policy renewal dates coming due between May 1 and August 15 of this year.
Policyholders and others can visit the dedicated Principal COVID-19 resource page for more information related to insurance coverage.
“The CARES Act is an important bridge to help those most affected today by the spread of COVID-19. We’re making the changes needed on our side to ensure plan sponsors and participants aren’t hit with additional costs to access these lifelines,” says Renee Schaaf, president of Retirement and Income Solutions. “We continue to work closely with policymakers in Washington on thoughtful solutions to help people and businesses manage not only the near-term pain of this crisis, but also potential long-term consequences. We remain focused on supporting our customers with the information, service and flexibility they need.”