Nearing the Summit

  Last year, we took some family to the nearby Great Smoky Mountains in search of a waterfall of note — one that the guidebooks said was “readily accessible.” 

That said, it took longer than we thought — we’d come up around a curve on the mountain trail, sure that it would be right there —– only to find (just) another curve. As we crossed folks coming back down from the falls, we’d (breathlessly) ask — “how much further is it?” — and while the responses were varied in terms of their accuracy and descriptive depth, they all added “it’s worth it.” 

And you know what? It was.  

Well, believe it or not, we’re nearing another kind of summit; a week from today we’ll be about halfway through the 2025 NAPA 401(k) Summit. It’s later than “normal” this year — and it’s been a long-time coming. Indeed, your Summit Steering committee has spent nearly a year putting this all together — leveraging YOUR input on topics, each has aligned themselves with a specific workshop — literally “owning” that session. That means fleshing out the focus, lining up speakers/panelists, developing a core list of key takeaways, conducting trial runs/practices, and ultimately making sure that all the materials are in on time — and that on “game day” everybody shows up and does their part.

As a result, I can pretty much promise that you won’t be able to attend every session you’d like. In fact, I’d be surprised if you don’t find yourself torn between multiple sessions all going on at the same time throughout the event. This year, we’ve even added a “technical track” for those who want to get “down and dirty” with the details!

In fact, we do approach our content a bit differently than most, I think. While it’s gotten to be pretty common for events to boast of the pedigree of their steering bodies, many —perhaps most — are essentially no more than figureheads to the actual agenda development. They’re a group to whom the folks doing the “real” work of planning, structuring and implementing the event keep updated, mostly for a sense of validation and the occasional course correct. Oh, and so that the event can “show off” the luminaries that have agreed to lend their name (and face) to promote its bona fides. Trust me — this steering committee doesn’t just steer — they row!

There are, of course, a myriad of ways to build and structure events. Note here that I haven’t said a word about our keynotes, or even NAPA After Dark (that has, in just a few short years, emerged as the pinnacle of industry networking events). But, aside from the practical information, valuable insights, vibrant networking — and yes, world-class entertainment — it’s worth remembering that among all the (other) things that set the NAPA 401(k) Summit apart — unlike every other advisor conference out there — your NAPA 401(k) Summit registration helps support the activities of NAPA — your advocacy, information and education organization — not the bottom line of some corporate media organization or some private equity firm. NAPA not only informs and educates — it literally is your voice with regulatory agencies and legislative bodies both here in the nation’s capital — and across the nation.

There’s a new administration — one whose goals and objectives with regard to retirement policy are still emerging. And while I know to some it seems we say this every year — there are real concerns about the influence that fiscal policy might have on retirement plans, the implications for Social Security funding and benefits, and legislative initiatives that (still) seek to undermine the private retirement system. 

So, if you’re one of the record 3,000+ arriving in Las Vegas next week — please lend your voice, support the ARA PAC, and get ready to leave full of energy, ideas, and a renewed fervor to make a difference.[i] 

While you’re there, please stop me (I’ll likely be running) and say “hey!” Make sure to thank the Summit Steering committee when you see them — and the ARA/NAPA conference staff as well — cause something this big doesn’t even get off the ground without a LOT of careful/thoughtful planning and on-site execution! 

I can promise you that the views from OUR Summit will be worth the trip — and when you’re back home, you’ll want to remember to share that with the folks that haven’t made it there yet! 

• Nevin E. Adams, JD

 

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[i] And if you haven’t (yet) applied to be part of the NAPA DC Fly-In Forum — well, today would be a good day to do so before it fills up as well!

A Tough Question

I’m rarely at a loss for words, but I was recently asked a question that gave me …pause.

It was a simple question really—John Sullivan and I were being interviewed on the 401(k) Specialist podcast—and Brian Anderson asked “which session are you most looking forward to at the NAPA 401(k) Summit?”

I was only too happy to defer to John while I gave the question some thought. But in truth, it was a little bit like asking a parent to name their favorite child.  Now, there are some sessions I am more interested in than others—but to pick one? 

Well, I just couldn’t do it—and fortunately Brian didn’t try to box me in (I did allude to a specific affinity for the LIVE Nevin & Fred podcast session, however).  

In fact, we do approach our content a bit differently than most, I think. While it’s gotten to be pretty common for events to boast of the pedigree of their steering bodies, many, perhaps most—are essentially no more than figureheads to the actual agenda development. They’re a group to whom the folks doing the “real” work of planning, structuring and implementing the event keep updated, mostly for a sense of validation and the occasional course correct. Oh, and so that the event can “show off” the luminaries that have agreed to lend their name (and face) to promote its bona fides.

Your Summit Steering committee has spent nearly a year putting this all together—and leveraging YOUR input on topics, each has aligned themselves with a specific workshop—literally “owning” that session. That means fleshing out the focus, lining up speakers/panelists, developing a core list of key takeaways, conducting trial runs/practices, and ultimately making sure that all the materials are in on time—and that on “game day” everybody shows up and does their part. As a result, I can pretty much promise you that you won’t be able to attend every session you’d like. In fact, I’d be surprised if you don’t find yourself torn between multiple sessions all going on at the same time throughout the event.

There are, of course, a myriad of ways to build and structure events—note here that I haven’t said a word about our keynotes, or even NAPA After Dark (that has in just a few short years emerged as the pinnacle of industry networking events). But, aside from the practical information, valuable insights, vibrant networking—and yes, world-class entertainment—it’s worth remembering that among all the (other) things that set the NAPA 401(k) Summit apart—unlike every other advisor conference out there—your NAPA 401(k) Summit registration helps support the activities of NAPA—your advocacy, information and education organization—not the bottom line of some corporate media organization or some private equity firm. NAPA not only informs and educates—it literally is your voice with regulatory agencies and legislative bodies both here in the nation’s capital—and across the nation.

Indeed, that voice is particularly essential this year, as the attacks—both overt and the insidious passive-aggressive types—are out and about with an unusual vigor in recent months. This being an election year—and one that seems particularly fraught with concerns—makes the current environment all the more precarious. It’s not hyperbole to suggest that the fate of the 401(k) could be in the balance.

So, if you’re one of the record 2,800+ arriving in Nashville next week—please lend your voice, support the ARA PAC, and get ready to leave Nashville full of energy, ideas, and a renewed fervor to make a difference. 

While you’re there, please stop me (I’ll likely be running) and say “hey!” Make sure to thank the Summit Steering committee when you see them—and the ARA/NAPA conferences staff as well—cause something this big doesn’t even get off the ground without a LOT of careful/thoughtful planning and on-site execution! 

And if you haven’t (yet) applied to be part of the NAPA DC Fly-In Forum—well, today would be a good day to do so before it fills up as well!

- Nevin E. Adams, JD 

What’s Top of Mind for Retirement Plan Advisors?

One of my favorite parts of the NAPA 401(k) Summit is a comprehensive annual survey we do of advisors in attendance at the Summit I call the Summit Insider.

It’s a unique opportunity to get the perspective of hundreds of retirement plan-focused advisors in a unique window of time. A chance, if you will, to see what’s on the collective minds of a very special group of individuals.

Like the networking experience of the Summit itself, it’s a chance to see what is actually on the minds and driving forces for the nation’s leading advisors. Sometimes it’s a validation—sometimes a repudiation—but it’s always insightful, all the more so in view of this year’s (record-breaking) response to the Summit Insider questionnaire.

Over the past couple of weeks, I’ve shared some insights in the NAPA-Net daily—but if you’re looking for a quick sense of the advisor perspective(s) on business practices, industry trends, team building, or future focus—well, here you go:

• There have been BIG shifts in sentiment regarding cryptocurrency (from positive to negative game changers) and state-run IRAs (ditto). 
• Managed accounts continue to be viewed negatively—a sharp and sustained turnabout from three years ago (when they were actually seen as a positive game changer).
• ESG remains the most over-hyped trend—but advisors are split as to whether it is a negative or positive game changer.
• Indeed, when it comes to over-hyped trends, ESG has demonstrated remarkable “staying” power, having topped that most over-hyped list for (now) four years running—and this year drew nearly THREE times as much support for that categorization (last year it was only twice as supported) as the #2—which was, again, cryptocurrency. MEPs/PEPs crept up to the #3 slot, while actually declining in overall ranking from its placement the past two years. 
• Cost loomed large as the biggest hurdle for managed accounts, though not far ahead of “participants lack understanding of how they work.” Most see the future of these as being offered by the advisor’s firm.
• Plan sponsor interest in retirement income options really hasn’t changed, hovering somewhere between “minimal” and “occasional.” Something else that hasn’t changed; portability remains the dominant advisor concern with these solutions. 
• Roughly two-thirds are now incorporating HSAs (health savings accounts) into financial wellness curriculums—though a third of those do so only if they consulted on the specific solution. 
• Nearly a quarter (24%) say their team’s work/life balance is “better than ever.”
• “Attracting and retaining talent” alongside “scaling your practice” remained the big issues for advisor practices over the next 12 months. Perhaps somewhat ironically, succession and advisor consolidation were in the “not important” category.
• Among support from DC wholesalers, “plan tools and resources” slightly edged out “competitive info” as valued services.

Thanks once again to all who took the time to share those (your?) perspectives and insights on the pages that follow. Thanks for being part of the 2023 NAPA 401(k) Summit—and thanks particularly to the sponsors of this year’s NAPA Summit Insider!

And please—like, share and comment! Check out the rest of the 2023 NAPA Summit Insider at https://bit.ly/23Summitinsider1

See you (all) in Nashville April 7-9 for the 2024 NAPA 401(k) Summit!

- Nevin E. Adams, JD

A ‘Value’ Proposition

A few weeks back, an industry friend commented that, while we had certainly done a great job promoting the NAPA 401(k) Summit, that campaign hadn’t fully captured the essence of what makes “the Summit” different. Let me try here.

There are, admittedly, a lot of conferences out there — and most promote — as we do — the great content, compelling keynotes, robust networking and great accommodations.  Some of them actually deliver on those promises. But since everyone says they do, how do you know the difference?

The most obvious metric is, perhaps growth. Time-pressed advisors don’t waste their time going to conferences that don’t deliver the “goods.” The Summit has now been around for more than 20 years — and it’s challenging to sustain consistent growth over that long a stretch. That said, when I arrived here back in 2014, my first Summit “here,” we had about 1,300 attendees — and about a third were advisors.  And we were pretty darned proud of that ratio.

But this year we’re looking at about 2,400 — and almost exactly half are advisors. You can do the math. 

Now, that’s the what — but it’s also part of the “why.” And for my money, a big part of the “why” is because of the “who.” I’ve long referred to the Summit as the nation’s retirement advisor convention for one simple reason; everybody who is anybody in the retirement plan space will be there — and they don’t just swing by to do a quick “drive by” presentation — they stay.[i] So, whether you’re looking to reconnect with old friends, to connect with new ones, or to meet and/or learn from others — the Summit has you covered on all fronts.

We do approach our content a bit differently than most, I think. While it’s gotten to be pretty common for events to boast of their steering bodies, many, perhaps most — are just figureheads to the actual agenda development. They’re a group to whom the folks doing the “real” work of planning, structuring and implementing the event keep updated, mostly for a sense of validation and the occasional course correct. Oh, and so that the event can “show off” the luminaries that have agreed to lend their name (and face) to promote its bona fides.

Our steering committee is informed not only by their own experience and perspective as some of the industry’s leading advisors, but by the reader polling that provides insights from you. We don’t just ask them what they think we should include (or merely ask for that affirmation of a sponsored agenda platform), we ask them what session(s) they are willing to “own” — and by that we literally mean carrying responsibility not only for panel/speaker selection, but for ensuring that those chosen fulfill their responsibilities — up to and including making sure that the session delivery itself lives up to the high standards of the nation’s retirement plan advisor convention. They literally have skin in the proceedings. And, unlike many events, we choose the topics, and only THEN do we match speakers/perspectives with those topics. The result? Well, despite a solid diversity of topics, attendees often “complain” that they want to attend two or three “competing” sessions all at the same time.     

There are, of course, a myriad of ways to build and structure events — note here that I haven’t said a word about our keynotes, or even NAPA After Dark (that has in just a few short years become the pinnacle of networking events). But, aside from the practical information, valuable insights, vibrant networking — and yes, world-class entertainment — it’s worth remembering that among all the (other) things that set the NAPA 401(k) Summit apart — unlike every other advisor conference out there — your NAPA 401(k) Summit registration helps support the activities of NAPA — your advocacy, information and education organization — not the bottom line of some corporate media organization or some private equity firm. NAPA not only informs and educates — it literally is your voice with regulatory agencies and legislative bodies both here in the nation’s capital — and across the nation. 

And more importantly, your attendance at the NAPA 401(k) Summit remains a unique investment in your future — and the future of your profession.

See you in San Diego!

 - Nevin E. Adams, JD

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[i] And there’s no better testimonial to the value of the Summit and the commitment to be part of it than the numerous courageous (and sometimes harrowing) efforts undertaken by many to get to Summit — see “Planes, Trains, and …U-Hauls?”

My 'Retirement' Account

I’ve spent my entire working career working with retirement plans—but most of it not focused on a retirement plan of my own.

In that sense, I am perhaps like many, maybe most of you. Oh, I thought about retirement (a lot, just not mine), maxed out my 401(k) (when I wasn’t co-funding college tuitions), and was at least intellectually cognizant of the potential costs of living for decades without a salaried paycheck. Much has been made of how difficult it is for younger workers to grasp the reality of retirement—but the reality is that retirement “myopia” is not limited to younger workers.

That said, and as you will hopefully have seen in the lead post today, I have announced my “retirement” —though it’s not retirement[i] in the traditional cessation of work sense. Yes, while I love what I do and the people I do it with (for the very most part)—I’ve been cranking out a daily news service (and then some) pretty much every working day (including vacations) across multiple firms and audiences since 1995.[ii] Simply stated, I am at a point in my life where I am ready (financially and spiritually) to spend less time “working”—and more time focusing on the things I want to spend time doing.

If you’ve ever left a job you love (even for one you hope to love more), then you’ll appreciate just how important it is to be leaving your work in good hands. To that end, I am thrilled to have John Sullivan coming on board. He has been a good friend and kindred spirit over the past several years. He, like I when I joined the ARA, is excited at the prospects of helping contribute and shape retirement policy, rather than merely observing and commenting upon those efforts. I’m thrilled that both he (and Brian Graff) want me to continue to contribute content and perspective to those efforts—and that I have been asked—for at least the next two years—to continue to lead the content development of the nation’s leading, largest and most significant retirement plan advisor conference, the NAPA 401(k) Summit. 

Beyond that, my plans for “retirement” (and yes, I am going to continue to describe it with quotation marks) are still emerging. Some travel, yes—some time with family, for sure—perhaps (finally) the book that I have been meaning to write for years… but was too busy writing to get around to it.   

It has been my great good fortune to have “stumbled” as a part-time college internship into a profession that I love—one that has not only provided a good living (albeit with some bumps along the way), but to which I could, with a clear and enthusiastic conscience, invest heart and soul (not to mention blood, sweat and the occasional tears) in pursuit of a noble goal—helping strengthen and support Americans’ retirement. I’m doubly fortunate to have had the opportunity to share with—and hear from—so many of you over the years.

I’m thankful for the opportunity I have been given here, and to have the opportunity to not just explain but to shape retirement policy with your support, and those of the incredible team here at the American Retirement Association. I treasure what I have learned and continue to learn, as well as the people it has been my great joy to work with and learn from over the years. 

More importantly, I look forward with great anticipation to this next phase of my career…as we all continue working for America’s retirement.

Stay tuned!

- Nevin E. Adams, JD

 

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[i] My actual “retirement” date is still months away, of course (Feb. 28, 2023)—and with any luck at all, Congress will pass legislation sometime before the end of this year that will, once again (as it did in 2019), “complicate” my holidays. Indeed, I continue to tell folks that I am “retiring,” but not quitting. 

[ii] And working in this industry since 1978…

Planes, Trains, and ...U-Hauls?

One of my favorite holiday movies is “Planes, Trains, & Automobiles”—but who thought so many would have to live it? 

The movie I’m referring to is that 1987 John Hughes classic starring Steve Martin and John Candy as a pair of travelers (Martin an advertising exec, Candy a traveling shower curtain ring salesman—and you think you have a hard job) trying to get home for Thanksgiving. There are any number of misadventures along the way—involving the aforementioned means of transportation on the trip from New York to Chicago… via Wichita and St. Louis. 

Well, a couple of weeks back several hundred advisors found themselves reliving that experience as a series of unrelated events emerged to thwart their scheduled travel to the NAPA 401(k) Summit in Tampa. It started early the day before the event with a strike by Alaska Airlines pilots, by mid-morning Southwest Airlines was experiencing ““intermittent performance issues following routine overnight maintenance of some of [its] backend technology,” there was snow in the upper Midwest, and in early afternoon the southeast found itself covered by a massive series of thunderstorms—all of which had an impact—and a ripple impact across the systems of travel—and all at a time when air traffic was arguably even more complicated by a large volume of Spring Break traffic as well. And that’s not even considering the normal issues with mechanical issues that some who missed the other events had to contend with.

As you might imagine, a good part of that Saturday was consumed not only worrying about, but hearing from, and responding to, speakers and staff who were ensnarled in those travel issues. At the same time, I heard from at least a dozen individuals who, on the ground in Tampa, but aware of the travel issues, reached out to me to volunteer their services as a stand-in for speakers who couldn’t get here in time. Meanwhile, there was the “call” to be made with regard to the outdoor activities that were being planned for Sunday (Flo-Rida) and Monday nights.

Sunday morning dawned with a great deal of uncertainty as to what we’d be looking at in terms of attendance and speakers. But what impressed me throughout was just how hard people were working to get to Tampa. And over the three days of the conference people just… kept on coming… 

There were some amazing stories of persistence and perseverance throughout—but the one that made the deepest impression on me was that of Odyssey Financial Group’s Michelle Coble and Adam Bahner. Based in Oklahoma City, OK, they got as far as Atlanta when not one, but two of the flights from there to Tampa were cancelled—and they were told that there were no seats on the flights out to Tampa for two days. There were no rental cars to be had, and the trains—well, they wouldn’t get to Tampa on time. So they rented a U-Haul—and drove that last leg from Atlanta to Tampa! 

When all was said and done, we had an amazing conference. Sure, some couldn’t get there—many despite enormous effort and inconvenience. But it was clear from the opening session all they way through to the close that those who were there were there because they really wanted to be there—and the level of enthusiasm and engagement—and I think the quality of the content and networking—were through the roof[i].

So, my sincere thanks and appreciation to the speakers and sponsors, to those who “stepped up” to fill gaps, and those who volunteered to do so (because even if we didn’t have to call on you, it relieved some planning pressure)—to the steering committee who helped ensure those gaps were filled, to the conference staff for all the extra work (and stress) that accompanied all this uncertainty.

But most especially, my thanks to all who (including those above) made those (extraordinary) efforts to “get there” via planes, trains, automobiles—and even U-Hauls—to be part of what, by any measure, was an extraordinary event! 

p.s.: Mark your calendars now for the NEXT one—April 2-4, 2023 in San Diego!

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[i][i] And, despite all the bad weather on Saturday, the weather during the conference was great, and the outdoor events unaffected!

An Insiders' Perspectve(s)

There’s nothing like the NAPA 401(k) Summit—particularly being at the NAPA 401(k) Summit after the many months and a worldwide pandemic that kept us all apart. 

Each year for the past four years we’ve taken advantage of that gathering (including in 2020 when we gathered “virtually”) to reach out[i] to the nation’s top retirement plan advisors to glean their perspective on a wide range of issues relating to their practice—and practices. 

This year’s Summit Insider was no exception—as we “consulted” with more than 500 retirement plan advisors and home office staff on a range of issues—the criteria in selecting—and rejecting—key business relationships, the things that are over-hyped—and the things that no one is talking about—but that everyone, at least in the eyes of these “Insiders,” should be. We also got some insights on retirement income, important features in choosing target-date funds, rollovers and outcomes. 

We’ve included a number of verbatim comments on what these “Insiders” wish that plan sponsors knew, or knew better. Sometimes those words are harsh, sometimes reassuring—but we asked advisors for their insights, and they were generous in doing so. I only wish we had room to share them all.

Key Findings

Among the key findings:

• Glidepath philosophy topped the criteria on selecting target-date funds, slightly outpacing 5-year performance.
• More than half of the advisors surveyed focus on measuring outcomes at the plan level during every plan review.
• Nearly two-thirds deliver financial wellness as a component of their current service offerings—another 17% do so through an external partner.
• ESG remains the most “overhyped” trend in the industry, outpacing robo-advice and MEPs/PEPs by a significant margin.
• Portability was deemed the most influential/compelling factor to respondents’ plan sponsor clients in considering a retirement income solution. It was also the most cited factor influencing advisor considerations.
• Client support and market intel were tied as the most-valued support from the DC wholesaler partners.
• Service was—still—the dominant criteria in selecting a TPA partner.  
• Rollovers, the SECURE Act’s expansion of a retirement income safe harbor, including lifetime income disclosures on participant statements, managed accounts, and e-delivery were all rated as “positive game changers.” However, a third rated managed accounts as “much ado about not much.”
• Legislation to allow student loan repayment matching was cited as a positive gain changer by 7 in 10, and legislation to expand emergency savings accounts drew “positive game changer” support of 60%. 
• The Labor Department’s fiduciary (re)proposal? A plurality (43%) said it was “too soon to say.” Which, as we’re still waiting for it, seems reasonable (if not obvious). 
• Recordkeeper consolidation was viewed as a negative game changer by nearly half (46%), though a quarter (23%) saw it as a positive.

As for what they wished plan sponsors knew more about, the list included “their roles and responsibilities,” the role(s) of other parties servicing the plan, fees, plan design, plan operations—oh, and “our roles,” of course. The verbatim quotes here are, as you might imagine, “priceless.”

A special thanks to the hundreds of retirement plan advisors who took the time to provide such thoughtful responses—and to the sponsors of this fourth edition of the Summit Insider. Which NAPA members can find in your mail—or online at https://www.napa-net.org/industry-intel/summit-insider.

- Nevin E. Adams, JD

Game Changers or (Just) Rearrangers?

In these extraordinary times, there’s a lot of change in the mix—and new legislative and regulatory developments that could be “game changers”—or perhaps not-so-much.

Even in the most normal of times, it’s customary for businesses in evaluating future prospects to consider/identify elements under a “SWOT” analysis: strengths, weaknesses, opportunities or threats—and the recent Summit Insider gave us a chance to see what is on advisor minds now—and for the days ahead.

For this year’s Summit Insider, we asked respondents[i] to weigh in on how they saw various portents of change: as a game changer, for good or ill, something about which much ado had been made without justification (those that are mere “rearrangers”)—or was it simply too soon to say? 

Here’s what they thought about: 

1. MEPs/PEPs (Multiple Employer Plans/Pooled Employer Plans)

40% - Too Soon to Say

38% - Positive Game Changer

20% - Much Ado About Not Much

12% - Negative Game Changer

Arguably one of the most-anticipated changes from the SECURE Act was the advent of (truly) “open” multiple employer plans (MEPs), rebranded and somewhat refined to what the legislation calls pooled employer plans, or “PEPs.” Long championed as a means to help close the coverage gap, particularly among smaller employers, by providing certain structural and cost efficiencies of scale—there are some details yet to be worked out by regulators (they aren’t effective until Jan. 1, 2021). 

More recently, MEPs have found themselves in the crosshairs of litigators who allege that, despite those efficiency claims, some providers have charged that some have charged excessive fees and not fulfilled their fiduciary obligations. All of which may, despite a minority view as a game changer, left a slim plurality calling it “too soon to say.”  

2. DOL’s Fiduciary Reproposal

37% - Too Soon to Say

26% - Much Ado About Not Much

26% - Positive Game Changer

11% - Negative Game Changer

Perhaps no regulatory undertaking in recent memory has occupied the focus of advisors—and advisor organizations—as the reconsiderations of the fiduciary rule. First in 2011, and then again in 2015, the Labor Department saw fit to reconfigure both ERISA’s fiduciary standard, the conditions under which a prohibited transaction exemption would be granted, and the type of retirement accounts to which those standards would be applied. 

Ultimately upended by the Fifth Circuit Court of Appeals with the plaintiffs’ challenge led by a legal team led by the man who would eventually become Secretary of Labor of an administration that would repropose a different version—one that, unsurprisingly, struck advocates of the prior administration’s efforts as “inadequate” to say the least. Regardless, the proposal, which by title anyway, purports to be “Improving Investment Advice for Workers & Retirees,” not only “restored” the 1975 five-part test’s standards on the conditions for advice to constitute “investment advice,” as well as a new prohibited transaction exemption allowing investment advice fiduciaries under ERISA to receive compensation, including as a result of advice to roll over assets from a plan to an IRA.

Whatever lies ahead for the proposal in the comment period and reconsideration—it’s doubtful that it would last long in its current form following a change in administrations. That, if nothing else, might explain the stance of respondents to this year’s Summit Insider—a plurality of which say it’s “too soon to say” what kind of impact it might have—or if it comes to life at all.

3. SECURE Act’s Expansion of Retirement Income Safe Harbor

54% - Positive Game Changer

27% - Too Soon to Say

15% - Much Ado About Not Much

3% - Negative Game Changer 

Among its many changes, the SECURE Act contains three sections that, taken together, are expected to have a positive impact on the provision of retirement income products in defined contribution plans: the reporting of a monthly lifetime income amount on participant statements, allowing for the portability of “in-plan” lifetime income benefits, and an expansion of the safe harbor for the prudent selection of lifetime income providers. 

The first is already in place among many providers (albeit not necessarily using the DOL’s proscribed method), the second kicks in only after an in-plan option is in place—but the third—additional insulation against what many see as the biggest stumbling block to plan sponsor adoption of these options—well, could that be a game-changer? Summit Insiders seem to think so.

4. E-delivery 

86% - Positive Game Changer

4% - Much Ado About Not Much

3% - Too Soon to Say

1% - Negative Game Changer

When the Labor Department unveiled the final e-delivery rule in May, it was the culmination of years of hard work of advocacy. The timing was precipitous, coming in the midst of the COVID crisis that separated so many workers—and recordkeepers—from their offices. That timing may slow the full impact out of the blocks, but over a decade the Labor Department anticipated that the new safe harbor will save plans approximately $3.2 billion net, annualized to $349 million per year (using a 3% discount rate)—money that could well be better spent on retirement savings. That has the makings of a positive game changer—and that seems to be just how the Summit Insiders see it.

6. Printing/Showing Lifetime Income Disclosures on Statements 

52% - Positive Game Changer

26% - Much Ado About Not Much

15% - Too Soon to Say

6% - Negative Game Changer 

We’ve already noted the three lifetime income enhancements in the SECURE Act, and if this one is already in play with many recordkeepers (and therefore, perhaps explains why a quarter of Summit Insider respondents say it’s “not much”), it’s potential to help shift the focus from accumulation to decumulation is largely unquestioned. 

Of course it remains to be seen what might emerge when the (still) interim final rule is finalized—and what changes recordkeepers that have already made the move to produce such illustrations on their own might have to embrace, and when. Still, there’s something to be said for consistency of approach—and universality of availability. 

Said another way—it’s “show” time.

- Nevin E. Adams, JD

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[i] Who Are the Summit Insiders?

Just over 400 advisor and home office “attendees” of the 2020 NAPA 401(k) Cyber Summit responded to this year’s Summit Insider. Just under a third (32%) had been a retirement plan advisor for more than 20 years, and a quarter had been for 15-20 years. There were, however, 14% who had less than 5 years experience in that role, and a nearly equal number (13%) that had been in the role for 5-10 years. 

Their target markets were similarly diverse. About a quarter each targeted plans with less than $5 million in assets, between $5 million and $10 million, and between $10 million and $25 million. The remaining quarter were divided between market segments ranging from $25 million to more than $41 billion in assets.    

Awesome 'Sauce'

Earlier this year I went to an event in our nation’s capital called “Awesome Con.”

As event names go, it’s a bit corny, but if it evokes a reference to Comic-Con, well that’s the point. Awesome Con is a mixture of cosplay (dressing up like your favorite comic book, gaming, or anime characters), celebrity meet-and-greets, and forums where like-minded individuals can not only learn, but debate plot lines, scientific trends that affirm (or refute) science fiction, and sit in on panels by some of the industry’s leading minds (and artists). No, I didn’t dress up – but I very much enjoyed getting to meet (and get autographs from) Marvel Comic’s Stan the Man Lee (see photo), Doctor #10 (David Tennant), and Eliza Dushku (of Buffy the Vampire Slayer fame), among others).

To be honest, I didn’t attend my first – the first – 401(k) Summit with that kind of anticipation. I had accepted an invitation to speak at an event – not that unusual – but at what was then a pretty unusual event – a conference for advisors who worked with retirement plans. What was even more unusual is that it was sponsored by ASPPA, a group I hadn’t previously associated with advisors. But what a remarkable event it turned out to be, both in terms of content, and the opportunity to meet and network with individuals like Fred Reish (our industry’s own Stan Lee?), and so many great advisors, many of whom would go on to be part of the group that would, a decade later, form the National Association of Plan Advisors.

A lot has happened since that first 401(k) Summit, most significantly the formation of NAPA itself. And a lot has happened to the NAPA 401(k) Summit since then – so much so that we now refer to it proudly, and with justification, as the nation’s retirement plan advisor convention. In an era where many advisors have chosen to cut back on such things, the NAPA 401(k) Summit continues to grow and expand.

This growth is both a function of the quality of the content and presenters – not to mention that of the attendees. Everybody is at the top of their game at the NAPA 401(k) Summit, and it shows. From those relatively humble, but promising beginnings, it has emerged as the must-attend event for advisors who are committed to the business of retirement plans.

As we reminded attendees last year, as important and impact-filled (and fun) as the NAPA 401(k) Summit is, it is much more than “just” a conference. This year more than most we’ve had the opportunity to see the impact that NAPA has on critical issues like the fiduciary regulation – creating and pushing for innovative solutions like the level-to-level fee exemption – and tax reform – pushing back against Rothification as a means of paying for corporate tax cuts, and outlining a set of retirement policy principles for tax reform ahead of the first reform proposals. And yes, in state capitals like Nevada, which is contemplating its own fiduciary standard, or in Oregon, Connecticut, and California, where state-run alternatives for private sector workers could be problematic.

But here’s the thing that many don’t appreciate. The NAPA 401(k) Summit is responsible for a significant amount of funding for our advocacy efforts on behalf of retirement plan advisors. That’s right – your registration fee doesn’t go to some private equity firm’s bottom line, nor does it simply act to keep a conference company in the business of organizing conferences – it supports advocacy efforts on your behalf, on Capitol Hill, with regulatory agencies, and – these days – in state capitals as well.

I know that April (still) seems a long ways off – but this year more than most the NAPA 401(k) Summit is that advisor experience you won’t want to miss. Even if you have been attending for years, you’ll get more from it than you can imagine – and your support will mean more to the benefit of the nation’s retirement system and retirement security than you may expect.

Join us. Your voice, more than ever, is needed. It’s going to be… Awesome.

Nevin E. Adams, JD

View "Points"

By any measure, the just-concluded NAPA 401(k) Summit was an incredible, record-breaking success – with so much good content and networking that it was hard to choose between sessions. For those who weren’t able to be there – or who were unable to be everywhere at once – here are some random thoughts, insights and perspectives from that event.

Health savings accounts could wind up being a big deal.

One man’s loophole is another man’s incredibly important tax preference.

The most important thing is not what happened, it’s what’s going to happen.

Online gambling didn’t kill Vegas – and robo-advisors won’t kill 401(k) advice.

In tax reform, everything is about trade-offs.

84% of Millennials surveyed want their investments to make the world better.

Retirement plans are about 1/50th of what a plan sponsor does.

Fees are still a major factor in landing a new client.

Most people want to do the right thing, but they don’t know how to do it.

When the market goes down, lawsuits go up.

Claiming Social Security before age 66 permanently reduces a client’s retirement benefit. Almost
75% of Americans claim Social Security before their Full Retirement Age.

After 66, Social Security retirement benefits grow by 8% per year.

All PEPs are MEPs but not all MEPs are PEPs.

People want to be financially secure. They know what to do to become financially secure. Yet, they are not financially secure.

What do you have “in your head” that’s not on your website?

In 1835 the normal retirement age was… death.

The DOL’s been very clear that “QDIA protection evaporates” under certain circumstances.

President Trump is like a tech stock – he could fly high, or he could be a train wreck.

For a plan committee, especially when it comes to investment changes, doing nothing is often best.

For prospects, at the end of the day, client references are the ultimate value message.

Repeatability is an important key to building a practice.

Plan sponsor: “Don’t assume what’s obvious to you is obvious to me.”

So, how are you going to top this?

We heard the latter a number of times during the course of the 2017 NAPA 401(k) Summit – which admittedly set a whole new standard for what has become the nation’s retirement plan advisor convention. But we also heard that after the 2016 NAPA 401(k) Summit, and I think we managed to do so. Thanks again to our sponsors, our presenters and facilitators, and most particularly those who supported the event with your attendance and participation – who were all part of a remarkable experience!

If you were there, tell a friend. And whether you were there or not, make plans now to attend the 2018 NAPA 401(k) Summit – and see how we’ll top this year’s!

Sign up for updates at http://napasummit.org/.

- Nevin E. Adams, JD

Your Money’s Worth

It’s time to put your money where your mouth is.

In just a few weeks, many of you will be at the NAPA 401(k) Summit in Las Vegas. This will be my third Summit since joining the organization, though I have been to, and spoken at, a good number of them over the years.

This year, as in years past, the steering committee, agenda team and NAPA leadership have been hard at work for months, developing the program, fleshing out the agenda, lining up speakers, and this year assigning session “owners” to make sure that you get maximum bang for your buck in terms of information and session quality.

We’ve taken your feedback on topics and format, expanded the peer-to-peer networking, and added a brand new component called “super” sessions. We’ve got some amazing keynote speakers, enhanced our plan sponsor panel, and, for the first time ever, incorporated a new networking opportunity called “Summit After Dark” which will include some incredible entertainment in world-class environs. Sure, you’ve been to the Summit, sure you’ve been to Vegas – you may even have been to Vegas for the 401(k) Summit. But I promise you this one will be different, “better” in terms of focus, depth of information, and interaction, and certainly bigger. While we try to remind folks that it is the only retirement plan advisor conference developed by plan advisors for plan advisors. The proof of that is, quite literally, in the program that has been developed for you.

What’s (Really) Different

Beyond all those important reasons, there are two other major considerations for you in attending this year’s NAPA 401(k) Summit. First is the issue of tax reform. This is something that we have been writing about on NAPA Net for months now, but with the 2016 election having given control of Congress and the White House to a single party, the odds for significant change – change on the order of the Tax Reform Act of 1986 – is significantly higher than we might have otherwise expected. Those consequences could be enormous on workplace retirement savings in the months to come – they certainly have been in the past. You will want – and need – to know what is afoot, and there is no better place for you to do that than the NAPA 401(k) Summit, particularly with the insights you’ll get from our “From the Hill to the Summit” keynote.

The other consideration is related, but it is not something we generally push. While the number of quality advisor events has certainly declined over the years, I know you still have several to choose between. For some, that choice is based on location, for others timing, and for still others cost. For some, of course, it can be all or more than one of the above – all
are valid considerations.

But among all the things that really set the NAPA 401(k) Summit apart – one thing stands out, this year more than most. Quite simply, it is that – and unlike every other advisor conference out there – your NAPA 401(k) Summit registration helps support the activities of NAPA – your advocacy, information and education organization – not the bottom line of some corporate media organization or some private equity firm.

That’s right – in addition to the insights, information, networking that you may get at some other events, your attendance at the NAPA 401(k) Summit is a unique investment in your future – and the future of your profession.

It is, quite simply, a great way – perhaps the best way – to put your money where your mouth is.

I hope to see you in Vegas! Register today (if you haven’t already) at www.napasummit.org.

- Nevin E. Adams, JD