Compliance November 19, 2021

House Committee Approves Bill Aimed at Increasing Retirement Plan Coverage

Among other things, the RISE Act would encourage retirement savings by allowing plan sponsors to offer small financial incentives to motivate employee participation.

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The U.S. House Committee on Education and Labor has voted unanimously to advance legislation introduced earlier this month that would improve access to retirement plans for employees and ease plan administrative burdens for employers.

The Retirement Improvement and Savings Enhancement (RISE) Act (H.R. 5891) was introduced by Committee Chairman Bobby Scott, D-Virginia, with support from Representatives Virginia Foxx, R-North Carolina; Mark DeSaulnier, D-California; and Rick Allen, R-Georgia.

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The RISE Act includes provisions that have been introduced in separate pieces of legislation, including the Securing a Strong Retirement Act, often referred to as “SECURE 2.0,” a reference to 2019’s Setting Every Community Up for Retirement Enhancement (SECURE) Act. SECURE 2.0 was passed unanimously by the House Ways and Means Committee in May.

According to a fact sheet about the RISE Act, the bill would:

  • Establish an online, searchable “Retirement Lost and Found” database at the Department of Labor (DOL) to help workers locate their retirement savings as they move from job to job;
  • Allow 403(b) retirement plans to participate in multiple employer plans (MEPs) and pooled employer plans (PEPs);
  • Ensure more part-time workers are offered opportunities to join retirement savings plans;
  • Clarify rules regarding the recovery of inadvertent overpayments to retirees, minimizing hardships;
  • Enable employers to provide small financial incentives, such as low-dollar gift cards, to incentivize workers’ participation in retirement plans; and
  • Simplify and clarify reporting and disclosure requirements related to retirement plans.

“I am proud to support this bipartisan measure to modernize our nation’s retirement laws. Everyone wants the opportunity to retire with peace of mind and the RISE Act will help many more Americans do just that. By cutting red tape, this legislation provides more incentives for employers to offer retirement accounts and for employees to participate in saving for their future,” Allen said in a press release.

In a letter provided to the bill’s sponsors, the ERISA [Employee Retirement Income Security Act] Industry Committee (ERIC) said it recognized the legislation as a critical next step in building on the SECURE Act and promoting the retirement security of workers and retirees. ERIC said it is particularly encouraged by several provisions of the bill, including an increase in the cap for transferring former employees’ retirement plan funds to an individual retirement account (IRA) to $7,000 from $5,000.

“The introduction of the Retirement Improvement and Savings Enhancement Act is an important building block for passing the next bipartisan retirement package and expanding retirement savings opportunities for Americans,” said Andy Banducci, senior vice president of retirement and compensation at ERIC. “ERIC supports legislation that eliminates outdated and unnecessary administrative burdens, allowing large employers, like ERIC member companies, to put as many resources toward their retirement benefits offerings as possible.”

Deals and People November 19, 2021

Retirement Industry People Moves

North Pier adds senior consultant in Chicago; Natixis Investment Managers hires head of retirement and institutional business; and Mesirow appoints managing director to oversee structured debt.

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Art by Subin Yang
Art by Subin Yang
Art by Subin Yang

North Pier Adds Senior Search Consultant in New Chicago Office

North Pier Search Consulting has announced the addition of Frank Szymanek to the firm as senior search consultant. Based in the firm’s new Chicago location, Szymanek opens North Pier’s third national office and will focus on outsourced chief investment officer (OCIO) and consultant search and evaluation projects in the central United States, as well as contributing on key national clients.

Szymanek brings three decades of experience in asset management, fiduciary support, and search and due diligence services to institutional clients. He holds a juris doctor degree from the John Marshall Law School, as well as multiple certifications and designations, including the certified financial professional (CFP) designation and the certified public accountant (CPA) designation. Previously, Szymanek was a senior consultant with PlanPILOT in Chicago, where he was the firm’s OCIO specialist.

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While at PlanPILOT, Szymanek also led retirement plan service provider searches, during which he focused on evaluating plan consultants, recordkeepers and financial wellness providers. Additionally, he spent 20 years with Northern Trust, working with institutional clients and family offices in both portfolio management and relationship management roles.

Natixis Investment Managers Hires Head of Retirement and Institutional

Natixis Investment Managers (Natixis IM) has announced that Liana Magner has joined the firm as an executive vice president and head of retirement and institutional in the U.S., based in Boston. She is a member of the U.S. executive committee and reports to David Giunta, CEO of Natixis Investment Managers in the U.S.

Magner leads consultant relations, institutional distribution and the retirement businesses, including overall responsibility for the strategy, development, management and growth of the defined contribution (DC) business in the U.S. As part of that role, she will lead the continued growth of the Natixis sustainable future funds, which were launched in 2017 and are now available in more than 250 retirement plans in the U.S.

Magner joins Natixis IM from Mercer, where she was a partner and served as the DC and financial wellness leader in the U.S. She has over 25 years of experience in the investment industry, including more than 20 years at Mercer, where she was responsible for strategy and growth of the DC business across the spectrum of solutions and clients. Additionally, she developed and led the firm’s DC outsourced chief investment officer (CIO) unit in the U.S.

Throughout her consulting career, Magner has specialized in working with large and mega DC plan sponsors. She holds a bachelor’s of arts degree in economics from the University of New Hampshire. She is a chartered financial analyst (CFA) charterholder and a member of the CFA Institute and the Boston Society of Security Analysts.

Mesirow Appoints Managing Director to Oversee Structured Debt Capabilities

Mesirow has announced that Patrick Leary has joined the firm as a managing director in Mesirow’s institutional sales and trading business. Leveraging more than 20 years in the fixed-income markets, Leary will be based in Mesirow’s established Boca Raton, Florida, office and will focus on building and overseeing Mesirow’s new structured debt capabilities.

Leary is the first of planned strategic hires in the region that will span the firm’s capital markets, investment banking, wealth management and retirement advisory services business lines and who will join senior Mesirow professionals in south Florida.

Leary joins Mesirow from InspereX, formerly Incapital, where he served as head of trading and, most recently, as chief market strategist and senior trader. Over the course of his career, which also encompasses roles at Primevest Financial and R. Seelaus & Co., Leary has traded rate products, corporate bonds, mortgage-backed securities and municipal bonds.

Leary is on the board of the South Florida Bond Traders Association. He earned a bachelor’s of science degree in finance and financial management services from St. Cloud State University in St. Cloud, Minnesota. He holds FINRA [Financial Industry Regulatory Authority] Series 7, 24, 55 and 63 licenses.

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