At first glance, Secure 2.0 has something for everyone.
In fact, the sweeping law with a range of retirement provisions that was passed late last year offers employers new opportunities to improve their employee benefits offerings, particularly those encouraging emergency savings, tying 401(k) plan matching contributions to employee student loan repayment, and encouraging overall retirement plan participation. For employers interested in helping employees improve their financial well-being, these provisions can be a compelling starting point for establishing a new financial wellness program or enhancing an existing one.
Emergency Savings Accounts
In particular, the law's impact on emergency savings accounts could become an important addition to financial wellness efforts.
"Emergency savings is really the cornerstone of a financial well-being program," said Holly Verdeyen, U.S. defined contribution leader with consulting firm Mercer. "These plans can be particularly attractive to employers with a large portion of employees living paycheck to paycheck."
The reason is simple. A successful emergency savings account can ensure that employees have access to cash when they need it without resorting to more expensive solutions, like high-interest payday loans or a 401(k) plan loan. "With emergency savings, even a small dollar investment can have a big impact," Verdeyen said. Some companies may add an incentive or match to increase emergency savings balances.
Getting Started Now
...
TRENTON, N.J. — Abbott Laboratories has agreed to pay more than $384 million to settle allegations that the company caused false claims to be submitted to federal and state programs involving cert...