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MissionSquare Encourages Congress to Pass the Retirement Fairness for Charities and Educational Institutions Act

"The bipartisan legislation [HR 1013] would ensure working Americans in education, charitable organizations, public service, and certain types of health care can access cost-efficient investment options available in all other retirement plan types, such as 401(k)'s and governmental 457(b)'s. While SECURE 2.0 helped move forward the necessary first step to provide 403(b) plans with lower-cost options by allowing CITs or group trusts, the securities law changes needed to make the provision effective were not included in the final bill."

Public Sector Employers Implement Programs to Improve the Financial Health of Employees

"This effort is part of a MissionSquare Research Institute collaboration with the International Public Management Association For Human Resources (IPMA-HR) and the National Association of State Treasurers Foundation (NASTF) ... Each fact sheet provides a summary of the jurisdiction's approach, outcomes, lessons learned, and future plans. Additionally, the fact sheets provide ideas, advice, and networking opportunities for other public employers exploring financial wellness programs.... The Financial Wellness Fact Sheets also are available on an interactive map."

Workplace AI Users Are Twice as Likely to Leverage Emerging Technology for Retirement Planning

"Plan Sponsors: Start with simple, broadly appealing features like retirement income estimation and financial goal tracking before introducing more complex tools. Positioning AI as a complement to human advisors can reinforce that AI use increases -- not replaces -- engagement with financial professionals."

Retirement Security Concerns of Employees in State and Local Government by Occupation (PDF)

16 pages. "The need for financial education varies across occupational groups but is paramount among employees in education, where many express the need for more guidance relating to adequate retirement savings (67%), taxation of employer's retirement plan (58%), identification of relevant benefits (54%), retirement plan vesting schedule (52%), and understanding defined contribution plans (51%)."

Default Investment Acceptance among Public Defined Contribution Plan Participants (PDF)

12 pages. " ... Default investment acceptance declines with age and income levels and appears to be higher for female participants, holding other demographic factors constant.... There was notable variation in default acceptance in the year 2020 (i.e., a period of heightened market volatility) among older DC participants.... Default investment acceptance is higher for public DC participants than 401(k) participants when controlling for age and income."

IRS Requests Comments on SECURE 2.0 Act Saver's Match

"The RFI, which includes 29 questions across various topics, such as eligibility criteria, fund designation, and recovery tax for early distributions, is designed to gather feedback from stakeholders, including plan sponsors, tax preparers, and organizations serving lower-income individuals. Comments are due by Nov. 4, 2024."

Guidance Issued for SECURE 2.0's New Exceptions to the 10% Early Withdrawal Penalties

"[IRS Notice 2024-55 provides] guidance on the implementation of two new exceptions to the 10% early withdrawal penalties under IRC Section 72. Sections 115 and 314 of the SECURE 2.0 Act of 2022 created emergency personal expense distributions and domestic abuse victim distributions, respectively. These provisions are optional for plan sponsors to adopt and are effective for distributions after Dec. 31, 2023."

SECURE 2.0 Act of 2022 Included in 2023 Omnibus Appropriations Package

"Key provisions included that are effective upon enactment or January 1, 2023: [1] Increase Required Mandatory Distribution age ... [2] Reducing 50% penalty tax ... [3] Eliminate the 457(b) 'First day of the month' rule ... [4] Automatic disaster relief ... Key provisions included that are effective January 1, 2024: [1] Requirement that age-based catch-up contributions must be Roth ... [2] Authorize student loan payment matching ... [3] Addressing the need for emergency savings ... Key provisions included that are effective January 1, 2025, and beyond: [1] Older workers could make larger catch-up contributions ... [2] Expedite part-time workers' participation ... [3] Saver's match program ... [4] Mandatory automatic enrollment/escalation."

More Than Half of State and Local Government Employees Contemplating Leaving Their Jobs

"State and local workers say they are considering changing jobs because they want a higher salary or a better benefits package (52%), are burned out from stress during the pandemic (47%), and/or want better work-life balance (36%). Public sector employees are considering retiring and/or leaving the workforce entirely due to pandemic burnout (42%), a desire to do things that bring joy (37%), and tension from working with the public [students' parents] (26%)."

Workforce Trends to Watch in 2022

"[1] Showcasing the importance of public sector roles ... [2] Tracking burnout ... [3] Supporting sustainable retirement benefits ... [4] Thinking beyond traditional benefits ... [5] Prioritizing diversity, equity, and inclusion (DEI) goals ... [6] Focusing on the drivers of the Great Resignation."