401(k) Specialist Issue 2 - 2023 - 11

401(k) FIDUCIARY FILE
Plan Participants Want ESG Investments
According to the research, 73% of those surveyed said they would
begin to participate or increase contributions if their plan offered
investments in companies with good ESG practices.
Additionally, 83% believe companies who focus on sustainable
business practices present significant growth opportunities for their
investments. This was particularly true for Millennial workers, as
91% were more likely to share this belief, and 88% saw access to
investments as an incentive to save for retirement.
" There's a really powerful belief among this generation that comA
NEW SURVEY by Natixis highlights what plan participants want
for their retirement, finding that many are in favor of environmental,
social, and governance (ESG) investments.
panies with good sustainable practices are going to perform better
for them, " said Dave Goodsell, executive director of the Natixis Center
for Investor Insight, in an interview with 401(k) Specialist. " They
see it as really an economic approach to investing rather than just a
values-based approach. "
Gen Xers and Baby Boomers were also receptive to sustainable
options in their retirement plans. Seventy-two percent of Gen Xers
said having access to ESG investments was an incentive to save, as
did 49% of Boomers. Seventy-eight percent of those in Generation X
saw growth opportunities with ESG, along with 74% of Boomers.
SECURE 2.0 Technical Corrections
Legislation Coming Soon
CONGRESSIONAL LEADERS have sent a message regarding glitches
in SECURE 2.0 to the Treasury Department and the Internal Revenue
Service (IRS).
The letter states Congress' intention to introduce technical corrections
legislation to correct erroneous statutory language in the SECURE
2.0 Act, including the inadvertent annulment of catch-up contributions.
Congress' message, which is addressed to Treasury Secretary Janet
Yellen and IRS Commissioner Daniel Werfel and signed by Ways and
Means Committee Chair Jason Smith (R-MO), Ranking Member Richard
Neal (D-MA), Senate Finance Committee Chair Ron Wyden (D-OR), and
Ranking Member Mike Crapo (R-ID), does not specify exactly when the
technical corrections legislation will be introduced.
" We intend to introduce technical corrections legislation to correct
erroneous statutory language, which may include items not addressed
in this letter, so that the provisions carry out Congressional intent, " the
letter states.
Perhaps chief among them is a needed fix regarding catch-up contributions-an
issue first identified by the American Retirement Association
back in January.
Among the other SECURE 2.0 sections flagged for fixes in the letter
are Section 102, which increases the startup credit for small employer
plans; Section 107, dealing with required minimum distributions; and
Section 601, allowing Simple IRA and Simplified Employee Pension
plans to add Roth IRAs.
In a bill consisting of 130 pages, there are bound to be some drafting
errors that create unintended consequences that need to be resolved.
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401(k) Specialist Issue 2 - 2023

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