More retirement-related regulatory news for plan sponsors, including links to detailed information.
DOL/SSA/CMS jointly launch online retirement toolkit
The U.S. Department of Labor (DOL) has announced the launch of an online toolkit to help workers identify key issues related to retirement planning. The DOL’s Employee Benefits Security Administration developed the toolkit in cooperation with the Social Security Administration (SSA) and the Centers for Medicare and Medicaid Services (CSM) to help workers understand important decisions related to employment-based plans, Social Security, and Medicare.
For more information, click here.
SEC issues proposed rule on money market fund reform; Amendments to form PF
The Securities and Exchange Commission is proposing two alternatives for amending rules that govern money market mutual funds (or “money market funds”) under the Investment Company Act of 1940. The two alternatives are designed to address money market funds’ susceptibility to heavy redemptions, to improve their ability to manage and mitigate potential contagion from such redemptions, and to increase the transparency of their risks, while preserving, as much as possible, the benefits of money market funds.
The first alternative proposal would require money market funds to sell and redeem shares based on the current market-based value of the securities in their underlying portfolios, rounded to the fourth decimal place (e.g., $1.0000), i.e., transact at a “floating” net asset value per share (NAV).
The second alternative proposal would require money market funds to impose a liquidity fee (unless the fund’s board determines that it is not in the best interest of the fund) if a fund’s liquidity levels fell below a specified threshold and would permit the funds to suspend redemptions temporarily, i.e., to “gate” the fund under the same circumstances. Under this proposal, either alternative could be adopted by itself or in a combination of the two alternatives.
Comments are due 90 days after publication in the Federal Register.
For a prepublished copy of the proposed rule, click here.