Although U.S. stock indexes are hovering at or near all-time highs, many American workers still aren’t financially secure enough to retire. In response, the Setting Every Community Up for Retirement Enhancement (SECURE) Act focuses on promoting lifetime income options like annuities within a 401(k) and incentivizing businesses to expand their retirement offerings like auto enrollment. The Act also liberalizes the existence of Multiple Employer Plans (MEPs) for plan sponsors to pool their investments and plan administration usually at a cost savings.
This Act officially became law in December 2019, marking one of the most comprehensive retirement reform packages employers have seen in years. What should plan sponsors and participants know about these changes?