ERISA | Navigating Key Regulations and Changes
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At the RPAG National Conference, NFP's President, Joel Shapiro, and Retirement Learning Center's COO, Jenny Kiffmeyer, hosted a unique session celebrating ERISA’s 50th birthday. The session was filled with insights into ERISA’s past and present, including how recent court rulings, regulatory changes, and SECURE Act updates impact advisors and their clients. Here’s a breakdown of the key takeaways from their lively, party-themed presentation.
Surprise Party: Chevron Doctrine Reversal and Regulatory Impact
Joel and Jenny began by discussing the “Surprise Party” of the session—the Supreme Court’s recent reversal of the Chevron Doctrine. This doctrine, which allowed courts to defer to regulatory agencies when interpreting ambiguous laws, has been a cornerstone of ERISA’s regulatory environment. With this reversal, courts may now take a more active role in interpreting laws, leading to uncertainty around established regulations.
The Ongoing Debate Over ESG Regulations
The session continued with a deep dive into ESG (Environmental, Social, and Governance) regulations, which have been a political football over the years. With fluctuating interpretations depending on the administration in power, ESG remains a hot topic. Jenny highlighted how advisors should approach ESG factors, emphasizing that prudence, loyalty, and risk are still top considerations when assessing plan investments.
The Wake: Investment Advice Fiduciary Regulations
Joel and Jenny described the current state of fiduciary regulations as a “wake” due to ongoing court challenges and legislative hurdles. The latest fiduciary regulations are currently on hold, which means the old five-part test from 1975 is still in effect. The potential for piecemeal updates means advisors must stay informed about which parts of the fiduciary regulations may survive and impact their practice.
Holiday Road: Leveraging SECURE and SECURE 2.0
The session also covered the SECURE Act and SECURE 2.0, with Joel describing them as “gifts” for the advisory industry. These pieces of legislation bring a host of optional and mandatory changes to retirement plans, with effective dates staggered over several years. Joel emphasized the opportunity for advisors to work with plan sponsors to design plans that align with their organizational goals
Planning for the Future: ERISA Amendment Deadlines
Jenny reminded advisors of key amendment deadlines for the SECURE Act provisions. The deadline for most plans to adopt mandatory amendments is December 31, 2026, with additional time for collectively bargained and government plans. Advisors should work with their clients to ensure timely amendments and document any optional provisions added to the plan.
Embracing ERISA’s Legacy and Looking Forward
The session concluded with a celebration of ERISA’s legacy and a reminder that while the regulatory landscape may be challenging, ERISA ensures advisors’ continued relevance in helping clients navigate retirement plans. By staying informed and proactive, advisors can turn these regulatory updates into opportunities for client engagement and plan enhancement.
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