Financial advisors to retirement plan sponsors should be telling clients now about potential regulatory changes instead of waiting until they are enacted, says a specialist in pension and employee benefits law.
ByAllAccounts sponsored the presentation by Marcia Wagner, a principal of The Wagner Law Group in Boston, for retirement plan advisors to help them understand President Obama's agenda for enhancing retirement security and plan transparency.
For instance, the Obama Administration is particularly concerned about target-date funds, which lost an average of 25% last year and some as much as 41%. Starting in July 2011, retirement plans that include target-date funds will have to include information on specific risks on the "glide path" for the funds.
Also the Department of Labor will issue best practices for handling target-date funds that will include guidance on protecting employees in retirement plans at small- and mid-sized companies. Sponsors of plans that include target-date funds also will need to provide additional information for employees.