The Legislative & Regulatory Desk is dedicated to tracking and analyzing federal and state legislative developments, regulatory rulings, and administrative guidance that affect retirement plans and pension programs. This section compiles updates from key agencies such as the IRS, Department of Labor, and SEC, providing clear summaries of new mandates, compliance deadlines, and rule changes impacting workplace retirement savings and plan administration.

Policy Monitor key regulatory developments and legislative updates relevant to retirement plans and pension programs.

We provide neutral, comprehensive monitoring of federal mandates and administrative rulings related to retirement plans. By aggregating primary source documents from agencies including the IRS, Department of Labor, and SEC, we track important compliance deadlines, structural reporting changes, and regulatory updates. This enables plan sponsors, participants, and industry professionals to stay informed about evolving legal requirements and their potential operational impacts.

Filter policies and regulations by issuing agency for targeted research and analysis. Federal Law IRS Rulings DOL / EBSA SEC / Regulatory Reporting Reqs

Federal Legislation involves the enactment and amendment of laws that govern retirement plans, including those affecting plan design, funding, participant rights, and fiduciary duties. Understanding these legislative changes is essential for compliance and strategic plan management.

The SECURE 2.0 Act represents the latest significant federal legislation aimed at enhancing retirement savings opportunities, expanding plan access, and updating regulatory frameworks. It builds upon prior reforms to improve workplace retirement plan features and participant protections. Federal Mandate refers to binding requirements established by federal law or regulatory agencies that retirement plans and sponsors must follow, including compliance standards, reporting obligations, and operational rules essential for lawful plan administration.

Section 101: Mandatory Automatic Enrollment

Starting with plan years beginning after December 31, 2024, the SECURE 2.0 Act mandates that all new 401(k) and 403(b) retirement plans created after the law’s enactment must include an automatic enrollment feature. This provision aims to boost employee participation by automatically enrolling eligible workers into their employer’s retirement plan unless they choose to opt out. The requirement reflects a significant policy shift toward encouraging retirement savings through default enrollment mechanisms, which have been shown to increase participation rates and help close the savings gap among workers.

Affected Plan Types

  • New 401(k) retirement plans established after the enactment date, subject to automatic enrollment rules.
  • New 403(b) retirement plans created following the law’s effective date, also required to implement automatic enrollment.
  • Exemption for small businesses with fewer than 10 employees, which are not required to implement automatic enrollment under this provision.
  • Exemption for newly established businesses less than three years old, which are temporarily exempt from the automatic enrollment mandate.

Effective Dates

The automatic enrollment requirement takes effect starting January 1, 2025, applying to all eligible plans beginning plan years after this date.

This rule applies specifically to retirement plans established on or after December 29, 2022, ensuring that newly created plans incorporate automatic enrollment provisions as part of their design.

Neutral Impact Analysis

The mandatory shift to automatic enrollment is anticipated to raise overall participation rates within the nonprofit and educational sectors by reducing barriers to entry for employees. Employers will face new administrative responsibilities, including setting default contribution rates—typically a minimum of 3% of pay—and establishing automatic escalation features that increase contributions by 1% annually until reaching 10% or 15%. While these changes support long-term retirement savings growth, they also require employers to update plan administration and communication processes to comply with the new standards.

Download Full Bill Text (H.R. 2617) Source: Official legislative documents from Congress.gov

IRS Regulatory Rules and Guidance

IRS Notice 2024-80 Issued October 2024

2025 Cost-of-Living Adjustments (COLA)

The IRS has announced official cost-of-living adjustments for the 2025 tax year, impacting dollar limits on retirement plan contributions and related tax provisions. These adjustments include increased contribution caps and enhanced catch-up contribution limits for eligible participants, reflecting inflationary trends and aiming to maintain the real value of retirement savings incentives. Such updates affect a broad range of retirement accounts and ensure alignment with economic conditions.

The annual contribution limit for 403(b) and 401(k) plans has been raised for 2025, allowing employees to defer a higher amount of their salary into these tax-advantaged retirement accounts. This increase provides greater flexibility for workers to save more toward retirement within the IRS-established limits.

$23,500

For participants aged 50 and older, the catch-up contribution limit has also been increased for 2025. This allows eligible employees to contribute additional funds beyond the standard limit, supporting accelerated savings as they approach retirement age.

$7,500

Affected Segments:

These cost-of-living adjustments impact a wide range of workers, including higher education faculty, healthcare professionals, K-12 educators, and employees in the private sector, all of whom commonly participate in 403(b) and 401(k) retirement plans.

View Official IRS Notice

DOL: Information and updates from the Department of Labor relevant to retirement plan compliance and administration. Regulations and Guidelines

Employee Benefits Security Administration (EBSA)

The "Retirement Security" Fiduciary Rule

The Department of Labor's Employee Benefits Security Administration (EBSA) has finalized amendments that redefine the criteria for who qualifies as an "investment advice fiduciary" under the Employee Retirement Income Security Act (ERISA). This updated rule expands the range of fiduciary responsibilities for financial advisors who provide guidance related to workplace retirement plans and IRA rollovers, aiming to enhance protections for plan participants by ensuring advisors act in their clients' best interests.

Effective Date and Implementation Timeline Status: Currently Under Judicial and Regulatory Review
Impacted Stakeholders Financial Advisors, Plan Recordkeepers, and Brokerage Firms

Potential Market Impact

The rule is expected to increase compliance obligations for advisors, including more rigorous documentation and disclosure requirements when recommending rollovers. Plan sponsors may need to revise fiduciary acknowledgment forms and update agreements with service providers to align with the new fiduciary standards, potentially affecting administrative processes and service costs.

Reporting Requirements

Form 5500 Series: Summary of 2024 Revisions

The 2024 updates introduce significant modifications to Schedule C, which covers Service Provider Information, and Schedule DCG, related to Defined Contribution Group reporting. These changes aim to simplify and improve the accuracy of reporting for multi-employer plans, reducing administrative burdens while enhancing data transparency for regulators and plan participants.

01

New Auditor Requirements

Revisions to the audit exemption criteria for "small plans" are now based on updated participant count definitions. This adjustment refines which plans qualify for exemption, ensuring audit requirements more accurately reflect plan size and risk, thereby promoting better oversight and financial accountability.

02

Detailed Fee Breakdowns

The 2024 Form 5500 revisions also increase transparency mandates concerning indirect compensation and revenue sharing arrangements. Plan administrators must provide more detailed disclosures about fees and financial flows, helping participants and regulators better understand cost structures and potential conflicts of interest.

View DOL Form 5500 Instructions (2024) ↗

Our coverage includes updates on federal legislation such as SECURE 2.0, IRS cost-of-living adjustments (COLA) announcements, Department of Labor fiduciary rules, reporting requirements, and other key federal regulatory developments shaping the retirement industry landscape.

Our coverage includes updates on federal legislation such as SECURE 2.0, IRS cost-of-living adjustments (COLA) announcements, Department of Labor fiduciary rules, reporting requirements, and other key federal regulatory developments shaping the retirement industry landscape.