Vol. 67, Issue 3
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IN THIS ISSUE
EDUCATION EVENTS
Apr. 9, 2025
2025 Advocacy DayApr. 22, 2025
Nursing ServicesMay. 14, 2025
2025 WHA Workforce ForumClick here to view quality event calendar
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Thursday, January 19, 2023
GUEST COLUMN: The Effects of Secure Act 2.0 on WHA Members
By Keith Berry, Senior Retirement Plan Consultant, M3 Financial (WHA’s Premier Partner)
Sweeping changes for retirement plans were signed into law on December 29, 2022, as part of the Consolidated Appropriations Act. Specifically, Division T is known as SECURE 2.0, and it builds upon the foundation laid by the 2019 “Setting Every Community Up for Retirement Enhancement” Act (now referred to as SECURE 1.0).
SECURE 2.0 contains 92 provisions, which can be viewed as almost universally good, with “good” being defined as “helpful to the cause of promoting retirement security.” Many of its provisions are effective immediately (i.e., 1/1/23 or before), so now is a good time for employers to begin familiarizing themselves with the new rules.
Of the 50+ sections of the Secure 2.0 Act that have modifications, two stand out and offer health care organizations a significant opportunity to better manage cost:
SECURE 2.0 contains 92 provisions, which can be viewed as almost universally good, with “good” being defined as “helpful to the cause of promoting retirement security.” Many of its provisions are effective immediately (i.e., 1/1/23 or before), so now is a good time for employers to begin familiarizing themselves with the new rules.
Of the 50+ sections of the Secure 2.0 Act that have modifications, two stand out and offer health care organizations a significant opportunity to better manage cost:
- Multiple Employer Plans (MEPs)/Pooled Employer Plans (PEPs)
- This is a huge opportunity for not-for-profit health care organizations who offer a 403(b) plan to capture the same cost savings offered today in 401(k) plans
- These plans have the potential to significantly decrease fiduciary liability, administrative burdens and plan audit cost
- Many forward-thinking organizations are looking into MEPS and PEPS today
- Collective Investment Trusts (CITs)
- These vehicles are alternatives to mutual funds or separate accounts and allow for greater flexibility in investment design and often times offer significant fee savings to employees
- Additional securities/banking legislation is still required to make these available in 403(b) plans