401(k) Specialist Issue 1 - 2021 - 21

401(k) REGULATION
in a better way, and people can see around
the corner a little bit. "
The fees are dramatically higher for smallto
medium-sized employers with assets under
management below a certain threshold. Scale
is needed to lower costs and expenses, and in
that regard, PEPs will prove useful, he added.
Having so many experienced people examining
PEPs helps in the long run.
" When I was at the DOL, we would roll
out a proposed rule and sometimes get a
blizzard of criticism and public comments. I
always took it as a positive. We would look
at the comments and see the expertise outside
of Congress and the administration. We
needed their input, thoughts, and warnings
to avoid pitfalls. I don't remember a single
proposed rule where a change wasn't made
to improve the final rule based on those
comments, so they're helpful. "
Specifically, with PEPs, the informal
comments he's seeing are helpful, and when
rule proposals begin, those comments will
be formalized.
" I think we're on the right track, and I'm
very optimistic. "
Lifetime Income
The potential SECURE 2.0 legislation
championed last year by Rep. Neal
and Rep. Kevin Brady, R-Texas to include
safe-harbor, deferral-only " automatic 401(k)s "
brings with it a possible guaranteed life
income provision, which Rutledge believes
will " push the envelope " on decumulation
provisions.
" It would require that at least 50% of a
participant's vested account balance be available
for a guaranteed lifetime income product
of some kind, " he noted. " That could be
a lifetime income game changer for defined
contribution policy in the United States. It's
been a long time coming. "
Mentioning the demise of defined benefits
and the rise of defined contributions, he
argued that lifetime income " is one of the
biggest things we've lost. " The legislation's
thrust is to implement automatic 401(k)s
to improve access, automatic enrollment to
improve coverage, and automatic escalation
to improve asset accumulation.
" It's the trifecta. Throw in lifetime
income provisions for decumulation, and it
would cover the waterfront. "
" Interest rates have been
low for over a decade,
and long-term, low interest
rates pose a profoundly
serious threat to
retirement security. "
ISSUE 1 2021 | 401kSpecialist.com
19

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401(k) Specialist Issue 1 - 2021

Table of Contents for the Digital Edition of 401(k) Specialist Issue 1 - 2021

Table of Contents
401(k) Specialist Issue 1 - 2021 - Cover1
401(k) Specialist Issue 1 - 2021 - Table of Contents
401(k) Specialist Issue 1 - 2021 - 1
401(k) Specialist Issue 1 - 2021 - 2
401(k) Specialist Issue 1 - 2021 - 3
401(k) Specialist Issue 1 - 2021 - 4
401(k) Specialist Issue 1 - 2021 - 5
401(k) Specialist Issue 1 - 2021 - 6
401(k) Specialist Issue 1 - 2021 - 7
401(k) Specialist Issue 1 - 2021 - 8
401(k) Specialist Issue 1 - 2021 - 9
401(k) Specialist Issue 1 - 2021 - 10
401(k) Specialist Issue 1 - 2021 - 11
401(k) Specialist Issue 1 - 2021 - 12
401(k) Specialist Issue 1 - 2021 - 13
401(k) Specialist Issue 1 - 2021 - 14
401(k) Specialist Issue 1 - 2021 - 15
401(k) Specialist Issue 1 - 2021 - 16
401(k) Specialist Issue 1 - 2021 - 17
401(k) Specialist Issue 1 - 2021 - 18
401(k) Specialist Issue 1 - 2021 - 19
401(k) Specialist Issue 1 - 2021 - 20
401(k) Specialist Issue 1 - 2021 - 21
401(k) Specialist Issue 1 - 2021 - 22
401(k) Specialist Issue 1 - 2021 - 23
401(k) Specialist Issue 1 - 2021 - 24
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401(k) Specialist Issue 1 - 2021 - 30
401(k) Specialist Issue 1 - 2021 - 31
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401(k) Specialist Issue 1 - 2021 - 38
401(k) Specialist Issue 1 - 2021 - 39
401(k) Specialist Issue 1 - 2021 - 40
401(k) Specialist Issue 1 - 2021 - 41
401(k) Specialist Issue 1 - 2021 - 42
401(k) Specialist Issue 1 - 2021 - 43
401(k) Specialist Issue 1 - 2021 - 44
401(k) Specialist Issue 1 - 2021 - 45
401(k) Specialist Issue 1 - 2021 - 46
401(k) Specialist Issue 1 - 2021 - Cover3
401(k) Specialist Issue 1 - 2021 - Cover4
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