The equity markets dropped by nearly 50% during the Great Recession of 2008 and 2009, but retirement plan account balances of those who stayed the course recovered their full value by 2010, despite the lingering economic challenges.
Due dates for filings or actions that would otherwise have been due on or after April 1, and before July 15, have been extended to July 15.
Consultations with retirement plan participants it serves will address retirement plan account questions as well as broader personal financial issues.
The firm also says it has designed a process that will make adopting hardship and loan relief provisions as seamless as possible.
COVID-19-related distributions will be capped at $100,000 with no mandatory tax withholding requirements and the ability to repay them.
The recordkeeper is making the move in response to the CARES Act.
The firm is also offering free fiduciary and wellness services to employers.
One silver lining in the economic fallout of the coronavirus pandemic in the United States is the opportunity to re-educate people about risk and the role of guarantees.
Fee waivers, accelerated processing and educational resources are being offered.
The firm says it hopes to help clients and participants during the coronavirus pandemic.
The IRS may determine that a ‘partial termination’ of a plan has occurred if a company undergoes sizable layoffs—but not furloughs—potentially impacting vesting schedules and other aspects of plan operations.
The firm has established a dedicated team to support participants who are considering accessing their retirement savings to meet their short-term financial challenges related to the pandemic.
In addition to waiving fees related to participant hardship withdrawals, the firm is suspending fees for plan amendments made in response to the pandemic.
In addition to waiving transaction fees for participants, Principal is waiving fees for certain retirement plan amendments.
Those few remaining advisers who have been reluctant to integrate digital communications as a core part of their client service strategies have little choice but to reconsider in this new world.
With the coronavirus pandemic causing acute financial harm to so many Americans, plan sponsors may feel compelled to offer hardship withdrawal relief in their plans; plan advisers can help them make the best decisions for their workforce by, for example, endorsing loans over outright withdrawals.
“The uncertainties caused by COVID-19 have not changed our perspective or commitment,” SEC Chairman Jay Clayton says.