How Recordkeepers Are Supporting Participants Impacted by LA Fires

As wildfires continue to rage across Los Angeles and Ventura Counties in Southern California, several recordkeeping firms are offering support to retirement plan participants impacted by the disaster.

The fires have killed at least 25 people and have swept through more than 40,000 acres in Greater Los Angeles, destroying more than 12,300 structures. Firefighters are still working to contain the blazes.

Among several recordkeepers that has taken responsive action, Empower announced on Tuesday that it is temporarily waiving distribution and mailing fees in an effort to support the financial needs of individuals impacted by the wildfires. One of Empower’s largest retirement plan clients is Los Angeles County.

Additionally, Empower’s call center representatives are available to assist with expediting transactions for customers and to help guide decisionmaking.

The Empower fee suspension is limited to those who reside in Los Angeles County, which the Federal Emergency Management Agency declared as a disaster zone earlier this week. The fee waiver will remain in place until further notice, depending on circumstances.

In addition to the fee waiver, Empower last week provided financial support to the American Red Cross, including matching donations made to the agency by any Empower associate. A spokesperson for Empower said the firm did a similar fee suspension on a smaller scale during past disasters, most recently with flood victims in the Southeast.

“It has been a very tough time for California residents living in harm’s way as wildfires ravage parts of Los Angeles County, and we want to do what we can to assist those who need our help,” said Edmund F. Murphy III, president and CEO of Empower, in a statement.

A spokesperson at TIAA said that, in response to the fires, the firm has streamlined the hardship withdrawal request process for participants in the disaster zone. TIAA is also waiving fees for loans sought by affected participants. The spokesperson added that participants can speak directly with a representative to discuss their options based on their individual circumstances.

All of TIAA’s offices in and around Los Angeles are closed until further notice. Associates across the firm are also able to support relief and have their donations matched by TIAA through its Disaster Relief Program.

Principal is currently working with plan sponsor customers in the area to assist in their relief efforts and with programs that can support employees who have been affected. The firm is tracking requests for assistance through its contact center to determine what additional actions might be helpful for individuals who need quick access to their retirement savings.

T. Rowe Price, Fidelity Investments and Alight Solutions did not provide specific information about relief efforts. Vanguard, John Hancock and Ascensus did not immediately respond to requests for comment.

The Internal Revenue Service last week announced relief measures to help retirement plan participants affected by the fires.