WASHINGTON, March 28, 2024 – The ERISA Industry Committee (ERIC) today filed a comment letter with the U.S. Department of Labor regarding the agency’s proposed regulation implementing Section 120 of the SECURE 2.0 Act. That provision permitted “automatic portability providers” to receive compensation for helping to reunite employees with retirement funds from previous employers. In its filing, ERIC recommended three changes to simplify the proposed rule.
“ERIC was very supportive of SECURE 2.0, including the automatic portability provision intended to help employees consolidate retirement savings when they switch jobs,” said Andy Banducci, Senior Vice President of Retirement and Compensation Policy. “Automatic portability is an important tool that can help retirement savers – particularly those with low account balances – to continue to take advantage of employer-provided benefit plans.”
In its filing, ERIC recommended that DOL’s final rule:
- Eliminate the proposed requirement that an automatic portability provider confirm the formal appointment of a plan official to oversee the investment of automatic portability transaction funds
- Not add additional disclosure burdens beyond those required by SECURE 2.0
- Provide an extended implementation timeframe and transition relief
ERIC member companies sponsor and maintain health and retirement plans for millions of workers, their families, and retirees. They supervise hundreds of billions of dollars in retirement assets in accordance with their obligations under federal law.
The comment letter may be accessed here.