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Going Forward There is some opportunity; tax reform is a good vehicle for positive pension reform, Holcomb said. He is hopeful the industry can get some reform that will make day-to-day plan administration easier for plan sponsors. Holcomb added that if Mitt Romney were elected, we would be wondering who he would pick to head up Treasury and Department of Labor (DOL) offices; things would be quiet until the appointments were made. However, since the administration will likely stay the same, we have a clear picture of what to expect. Holcomb believes we will get the fiduciary definition re-proposal as well as proposed regulations early next year about lifetime income projections on participant statements. Holcomb thinks there will be a mandate to provide the projections on statements. Dudley said, in general, because it is the second administration for the president, there is a likelihood that agencies will have freer reign as far as regulations go, so they will go further than they have in the past four years. Regulations will be more sweeping. For example, the fiduciary definition will sweep more people in. Dudley contended it will be a broader approach, and employers will have to be much more careful about who is talking to whom and about investment offerings. Dudley added that there is a strong sense in the administration that lifetime income is a problem, and it is looking for every way to shift from a lump sum frame of mind to an annuity frame of mind. Treasury will look for ways employers can offer guaranteed payments through retirement plans, she said.
Going Forward
There is some opportunity; tax reform is a good vehicle for positive pension reform, Holcomb said. He is hopeful the industry can get some reform that will make day-to-day plan administration easier for plan sponsors.
Holcomb added that if Mitt Romney were elected, we would be wondering who he would pick to head up Treasury and Department of Labor (DOL) offices; things would be quiet until the appointments were made. However, since the administration will likely stay the same, we have a clear picture of what to expect. Holcomb believes we will get the fiduciary definition re-proposal as well as proposed regulations early next year about lifetime income projections on participant statements. Holcomb thinks there will be a mandate to provide the projections on statements.
Dudley said, in general, because it is the second administration for the president, there is a likelihood that agencies will have freer reign as far as regulations go, so they will go further than they have in the past four years. Regulations will be more sweeping. For example, the fiduciary definition will sweep more people in. Dudley contended it will be a broader approach, and employers will have to be much more careful about who is talking to whom and about investment offerings.
Rebecca Mooreeditors@plansponsor.com