There has been a lot of talk about the Bipartisan Budget Act of 2018, which was passed by Congress and signed by the President on February 9th, 2018. The law will last for two years and increase funding for both military and social programs. It represents the first significant bipartisan legislation in a long time. However, hidden within the budget are several items that can directly affect recordkeepers and plan sponsors.
Complying with the new retirement plan rules
Digital transformation challenges in banking have been well understood and the strategies to address them simple and clear. However, it is becoming increasingly apparent that the industry is reaching a tipping point in the digital transformation journey.
Understanding the Bipartisan Budget Act of 2018 and how it affects your retirement programs is essential. An appropriate response program may be necessary and could include:
- Process and technology review and remediation for California wildlife relief, including policy and procedures documentation for changes to the request process
- Process and technology review of how best to support a plan sponsor’s opening up of the hardship withdrawal process based on changes to the Safe Harbor guidelines
- Reverse engineering of recordkeeping systems to understand exposure to hardcoded requirements and duplicative processing
The ideal response would be holistic and centrally managed and sponsored by key stakeholders from business, operations, and technology, as well as incorporate critical input from legal, risk, and compliance.
To learn more about the Bipartisan Budget Act of 2018 and its impact on the retirement services industry, download our new guide.