Compliance December 14, 2015

Legislators Introduce Bill to Improve Women’s Retirement

The Women’s Pension Protection Act increases spousal protections and improves retirement plan coverage for long-term part-time workers, among other things.
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Representative Jan Schakowsky (D-Illinois) and Senator Patty Murray (D-Washington) introduced H.R. 4235, The Women’s Pension Protection Act.

The Women’s Pension Protection Act:

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  • Increases Spousal Protections – Spousal protections for benefit plans require married workers to get their spouse’s consent to take money out of the couple’s retirement account. Currently spousal protections are only available for defined benefit plans, but the Act would extend spousal protections to the growing category of defined contribution plans.
  • Improves Retirement Coverage for Long-Term Part-Time Workers – The bill would amend the current minimum participation standard—the completion of 1,000 hours during a 12-month period—for workers to participate in their employer’s retirement plan. Under the Act, workers who complete 500 hours of service for three consecutive years will be eligible to participate in their employer’s retirement plan.
  • Creates Access to Consumer Information – The bill will require that, in any offer to sell a financial product or service, financial providers shall provide a link to the Consumer Financial Protection Bureau website with information relating to retirement planning or later-in-life economic security.
  • Awards Grants to Promote Financial Literacy for Women – The Act will award grants of at least $250,000 to community-based organizations to improve the financial literacy of women who are of working or retirement age.

“On average women face a 26% gap in retirement savings compared to men, while also being much more likely to earn less than their male counterparts,” Schakowsky noted in a statement. “This is why I and my Senate colleague, Patty Murray, have introduced legislation that would increase women’s access to retirement security by improving spousal protections to retirement plans such as 401(k)s, making more long-term and part-time workers eligible for retirement plans, and improving financial literacy. By enacting these reforms we can improve the economic and retirement security of women and all Americans.”

Deals and People December 11, 2015

Retirement Industry People Moves

This week: CBIZ makes another acquisition, Arnerich Massena names a division managing director and Wagner Law adds an of counsel.
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CBIZ Inc. has acquired The Cottonwood Group Inc. of Overland Park, Kansas, effective December 1.

Cottonwood, with 15 employees, provides pension plan consulting, actuarial and investment services for institutional pension plans, retirement funds, endowment funds and foundations. The firm reports that it recorded approximately $3.1 million in revenue over the past year.

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Janet Thompson, principal of Cottonwood, says joining CBIZ will allow the company to offer the national resources that will help them compete in today’s market. “We think joining CBIZ will also give our associates more room to grow in their careers and that will directly benefit our clients as well,” she says.

Steve Gerard, chairman and chief executive of CBIZ, cites Thompson and John Dykes, principal of Cottonwood, for their experience and reputation.

CBIZ acquired a pension administration firm in October and bough Tegrit Retirement Planning last year.   

NEXT: Arnerich Massena names new leadership in institutional services

Terri Schwartz has been named managing director of the institutional services group at Arnerich Massena Inc.

Previously, Schwartz was director of business development. She will be responsible for the strategic development of Arnerich Massena’s institutional and retirement plan services team, providing oversight of the firm’s services to corporate and non-profit clients. She will continue to oversee the firm’s business development team.

Schwartz has more than 30 years of experience in financial and investment consulting, client relations, and executive business planning. She previously served as director of consultant relations for Cutwater Asset Management, a BNY Mellon company, and as a financial consultant/principal and director of client relations for another consulting firm. She has also held various sales and marketing roles at Arnerich Massena & Associates, Inc., the Investment Consulting Group of Dain Bosworth, and Salomon Smith Barney.

Tony Arnerich, chief executive, cites Schwartz for her depth of experience and knowledge of the investment consulting industry.

NEXT: The Wagner Law Group takes on new ERISA attorney

Barry Salkin, a New York ERISA (the Employee Retirement Income and Security Act) and employee benefits attorney, will join The Wagner Law Group as of counsel, effective January 1.

Salkin is a prolific ERISA and employee benefits lawyer, with substantial expertise in both qualified and nonqualified retirement plans, executive compensation, welfare plans, and Title I ERISA matters.

He has been published on a variety of ERISA topics and is an editor of the “Benefits Law Journal.” Salkin has also been selected as a New York Super Lawyer from 2011 to the present.

Marcia Wagner, managing director of The Wagner Law Group, says Salkin will add a strategic element of “outstanding expertise” to the firm’s attorneys.

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