exemption with the SEC’s Reg BI, someofficials call for more changes to it andfor Labor to defer final rulemaking.
Sept. 18: A Biden administrationwill likely seek to overturn both theSecurities and Exchange Commission’sReg BI and Labor’s fiduciary rule,Morningstar analysts predict.
Sept. 23: The Financial IndustryRegulatory Authority plans to issueguidance on areas that broker-dealersshould focus on regarding Reg BIcompliance and also mulls some examchanges, CEO Robert Cook says.
Sept. 25: FINRA sends changes to itsexpungement process to the SEC forapproval. The plan would create a rosterof arbitrators with enhanced training andexperience to decide whether to expungeclient complaints. In some cases, thearbitrator panel would be selected torule on an associated person’s request toexpunge client dispute information.
Oct.15: Fed Vice Chairman forSupervision Randal Quarles and SECChairman Clayton indicate that moneymarket reforms enacted after the GreatFinancial Crisis may not be enoughto insure the stability of prime moneymarket funds.
Oct. 27: House of Representatives’Ways and Means Committee ChairmanRichard Neal, D-Mass., and rankingmember Kevin Brady, R-Texas, introducebipartisan legislation, the Securinga Strong Retirement Act of
2020, to boost the requiredminimum distribution agefrom 72 to 75. It builds on theSetting Every Community Upfor Retirement Enhancement(SECURE) Act of 2019.
Nov. 5: Labor’s proposed fiduciary prohibited transaction exemption (to align itwith Reg BI) could be “a dead letter” if thedepartment fails to send the final versionto the Office of Management and Budget.
Retirement & Financial Planning News
March 23: Some 63% of those polledby Lending Tree say their finances havebeen hurt by COVID- 19, 27% reportstock market losses, and 21% have spentmore than they could afford. Also, 40%have seen their paychecks hit.
April 9: The IRS indirectly extendsthe 60-day rollover rule for individualretirement accounts until July 15 forrequired minimum distributionstaken from Feb. 1 to May 15.
April 22: Social Security’stwo trust funds are still ontrack to be depleted in 2035,with 76% of benefits payableat that time, says the program’sboard. After funds are depleted, benefits will be financed by payroll taxes butwill decline unless changes are made toimprove the trust fund’s reserve.
June 15: Pre-retirees born in 1960
may suffer a blow to benefits, since
the Social Security Administration’s
benefits formula uses the top 35
years of a retiree’s earnings, adjust-
ed by an indexing factor. That fac-
tor is based on the Average Wage
Index for the year someone turns 60,
which will be 2020 for those born
in 1960. This year’s wage index
may drop 15% and lead to a
13% drop in benefits, says aWharton study.
Aug 25: A broad-based
payroll tax cut, like one pro-
posed by President Trump,
“would interfere with Social
Security’s traditional revenue stream
while failing to deliver effective or
equitable stimulus,” says SSA Actuary
Sept. 2: The Congressional BudgetOffice projects the main Social SecurityTrust Fund will be depleted in 2031,three years ahead of an earlier estimate.
It expects Medicare’s Hospital InsuranceTrust Fund to be gone in 2024.
Sept. 20: Three large insurance firms
slash their interest rate assumptions,
which affect the reserves insurers
hold and invest to support policies and
annuities. This signals higher prices
ahead for these policies and more
limited benefits guarantees.
Oct. 13: Social Security
Security Income recipi-
ents will see a 1.3% cost-
of-living adjustment in
2021, down from 1.6% in 2020.
The “father” of the 4% withdrawal rulefor retirement savings, Bill Bengen, tellsblogger Michael Kitces that he’s actually used 4.5% for clients. Also, withlow inflation, the safe withdrawal ratemay be closer to 5%.
Oct. 22: Some 51% of adults viewtoday’s economy as worse than that of2008, a poll from Edelman FinancialEngines finds. Also, 26% say they withdrew funds from retirement or savingsaccounts recently.
Oct. 26: American International Groupplans to split the AIG Life & Retirementbusiness off from the rest of the company.
Nov. 5: AIG is mulling an IPO orprivate sale for a 20% stake of its life/retirement unit.
Prudential Financial will end sales ofvariable annuities with guaranteedliving benefits.
Nov. 9: Medicare Part B premiums in2021 will jump $3.90 a month for manyretirees to $148.50 a month and to at least$207.90 for high-income earners.