In short, the Secure Act would speed up the process of pooled employer plans going mainstream—something advisors and other financial service providers are eagerly awaiting.
“While the expansion of opportunity in the DOL rule is a step in the right direction, the passage of the Secure Act will further bridge the gap for small companies by eliminating some of the fiduciary hurdles and providing incentives for participation,” said Allison Brecher, general counsel at New York-based Vestwell, a digital retirement plan platform that works with advisors who want to offer and administer customized 401(k) and 403(b) plans.
“To make the most of this anticipated evolution, advisors should already be thinking about what changes are needed in their business and marketing strategies in order to effectively serve the smaller plan market," Brecher said.
But the question of when and how advisors will be granted broader PEP authority looms.
“It doesn’t look like the [senator] holds will be lifted before the Senate adjourns for recess,” one Washington financial services lobbyist told Financial Advisor.
“There is a lot of speculation that maybe something will come up later … or that the bill will go through Senate committees and a floor vote or be used as an end-of-year play and attached to a must-pass bill,” the lobbyist said.
“This doesn’t mean the push ends. Over the August recess, there is a lot of effort planned by a lot of trade and lobbying groups, including social media campaigns and op-eds targeting many districts in key areas.
“Momentum is everything, and it’s important to keep that going now and not wait,” the lobbyist said.
“The way Americans work and live is changing, but policy around how we save for retirement will not keep pace if the U.S. Senate isn’t able to act on legislation that passed the House in May,” said Susan Neely, president and CEO of the American Council of Life Insurers, writing in an editorial that appeared in The Hill yesterday.
“Put simply, low- and middle-income Americans struggling to save for retirement lose if the U.S. Senate fails to pass the Secure Act. There’s no time to wait—the time is now,” Neely said.