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week ending February 21st, 2020 Americans are drowning in debt. Studies have shown that debt and homeownership are top reasons retirement plan participants withdraw funds from their retirement accounts early. And a recent Hearts & Wallets survey found more consumers think employers should help pay off student loan debt (39%) than should help with retirement (25%). These findings signal a strong need for financial wellness programs that address debt management. In addition to solutions to address student loan as well as consumer debt, employers may want to consider emergency savings solutions to help employees avoid debt in the first place. This edition of PLANSPONSOR Weekend will give you food for thought about structuring your financial wellness program. Editor's Choice Participants Debt, Homeownership Driving Participants to Withdraw Retirement Funds Data about retirement plan participant loans and hardship withdrawals supports the need for better financial wellness programs, especially for Millennials and Gen Xers. Administration Employer Student Debt Help Not Reaching All Who Need It A Fidelity analysis found Baby Boomers and Generation X have high student loan debt, but as it may be for their children’s education, many employer programs are not helping. Data and Research High Cost of Living, Debt Are Reasons Americans Don’t Save Enough A survey found more Americans are prioritizing building an emergency savings fund over retirement savings. Benefits Automating Emergency Savings for Retirement Plan Participants Aside from the benefit of having emergency savings, people acclimated to having retirement savings automated will likely stay with an automated process. Administration Mechanics of Implementing a Sidecar Savings Account Keeping retirement plan contributions rolling in while also allowing employees to save for emergencies. Popular Reads Compliance DOL ESG Proposal Throws a Cloud Over Prior Guidance The proposed regulation seems to create stricter limits for ESG investing in retirement plans, but experts say it is not all doom and gloom for plan sponsors and participants who want these investments. Compliance Lawsuit Says Plan Fiduciaries Should Have Chosen Less Expensive CITs Though the majority of investment options for Estee Lauder’s 401(k) are CITs, the lawsuit argues the TDFs are more expensive private label CITs. Opinions COVID-19 Compliance Corner: IRS Expands CRD Eligibility and Clarifies Loan Rules Each week, Carol Buckmann, with Cohen & Buckmann P.C., will explain legislative provisions or official guidance related to the COVID-19 pandemic that affect retirement and health plan sponsors. Deals and People Retirement Industry People Moves TRA acquires retirement plan administrator and Compass Advisors names retirement services director. 2019 Recordkeeping Survey Five hot-button issues plan sponsors need to cover in provider searches. Did someone forward you this newsletter? Sign up here to get PLANSPONSOR Weekend directly in your mailbox!

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