Vanguard Downgrades Global Economic Growth

In the rapidly changing environment that has characterized 2022 so far, we have downgraded our forecasts for GDP growth for the United States and China and revised our views on inflation and monetary policy for the euro area. But we believe these economies will likely avoid a recession this year, and our forecast for Federal Reserve policy is unchanged. Learn more here.

The Benefits of eDelivery Are Growing

As we prepare to offer electronic delivery of your annual notices, it’s not too early to begin planning for a successful year end. Reduce the burden and cost associated with mailing annual disclosures by delivering them electronically. To take advantage of electronic delivery for certain annual notices, plans with a 12/31 year end must be enrolled in eDelivery no later than September 15, 2022. If you’re not already taking advantage of our notice delivery service, we offer this service for plans enrolled in eDelivery. If you haven’t already, enroll in eDelivery from the homepage of the plan website or by navigating to Plan > Delivery Services, where you can also review your current elections.

The Value of Professionally Managed Allocations

Professionally managed allocations continue to shape investment behavior in defined contribution (DC) plans in positive ways. Their growing use by plan sponsors and participants are improving portfolio construction and leading to more disciplined participant investment behavior, according to Vanguard research, Professionally Managed Allocation Adoption in 2021.

Registration Is Open for the August Certified Plan Sponsor Professional (CPSP™) Credential Virtual Classroom

Expand your retirement plan knowledge and confidence as a plan sponsor by earning your CPSP credential. This nine-week, instructor-led program begins August 11 and features weekly live webinars and exclusive portal access to plan administration resources. The course is also approved for 16 hours of continuing education (CE) credits through HRCI^® and SHRM^®. One credential earner commented, "It was a great course! I feel much better prepared to assist in the administration of our company's 401(k) plan." The registration deadline is August 4, 2022. Learn more and register.

SECURE 2.0: House Passes Retirement Reform Proposal

The U.S. House of Representatives recently passed the Securing a Strong Retirement Act of 2022 (or SSRA, which lawmakers are coining “SECURE 2.0”). The bill includes provisions from the Retirement Improvement and Savings Enhancement (RISE) Act, which came out of the House Education and Labor Committee in November 2021. This bill contains numerous retirement provisions, as well as minor technical corrections to the SECURE Act and other IRA provisions. To learn more, read this brief summary, which highlights these updates in more detail.

The IRS Has Released Proposed Required Minimum Distribution (RMD) Regulations

On February 23, 2022, the IRS released proposed guidance revising existing RMD and related regulations—guidance that was brought about by the SECURE (Setting Every Community Up for Retirement Enhancement) Act of 2019. The proposed regulations include provisions relating to RMDs, rollovers, and to penalty taxes that apply when RMDs are not taken properly. As the IRS examines feedback to their proposed guidelines, it may take several months for the IRS to release final regulations. In the meantime, you can read more about the proposed regulations.

Tap Into Best Practices for Loan Administration

During times of uncertainty, employees may rely more heavily on loans, making quality administration even more important. We're here to help with guidance and tools for you and your employees. Read the provided legislative overview to help you understand any implications for your employees who take loans. Additionally, if online plan loans are allowed, you can keep loan administration running smoothly by using these best practices.