They say change is good. Some changes are good, and some changes have growing pains. I’m a big fan of retirement plan coverage, so allowing long-term, part employees to defer will be a good thing while maintaining full-time service requirements for employer contributions.
The change will have growing pains, with many plan providers and plan sponsors not being ready for the change. That may mean missed deferral opportunities and corrections that need to be made. It will take some time to sort things out, but I think it will be a good thing for the retirement plan business.
