On Thursday, Newport Retirement Services announced that it was offering free 3(16) fiduciary services to its clients to help serve plan participants affected by measures to stop the spread of COVID-19.
[Related: Ten Years Later: What have Target Date Funds Learned About Recessions and 401(k) Plans?]
Throughout the country, states are requiring nonessential businesses to reduce their workforces and cease consumer-facing operations to slow the spread of coronavirus. Workers who are being laid off, furloughed or having hours cut are facing uncertain financial futures.
Newport anticipates an increase in retirement plan participants taking loans from their accounts, or making hardship withdrawal requests.
“Our clients, like all companies across the country, are focused on two things: protecting the health of their employees while serving their customers” Greg Tschider, Newport CEO, said in a statement. “This is our way of providing them with some relief so they can focus on what’s critical—keeping their people safe, while keeping their business running.”
Newport will take on day-to-day administrative activities for its clients, including:
- Determining eligibility for plan participation
- Reviewing, processing and validating requests for loans, distributions, rollovers, QRDOs and RMDs
- Evaluating beneficiary elections
- Assisting with participant interactions and questions from terminated employees
Newport will offer these services free of charge for the remainder of the year.
As the virus spreads, financial services firms have jumped into action to help consumers and financial professionals manage the rapidly changing situation. FinFit, a financial wellness platform provider, opened its platform to all employers to the end of June.
Credit card companies and mortgage lenders are allowing consumers to defer payments, sometimes waiving late fees or interest.
[Related: Waived: 2020 RMDs, Early 401k Withdrawal Penalty If (When?) Coronavirus Relief Bill Passes]
Earlier this month, the IRS announced that the tax filing and payment deadline has been extended to July 15. The agency noted that taxpayers who can’t make payments by the new deadline can still file for extensions, and interest and penalties won’t begin accruing until July 16.
Danielle Andrus works as an editor for The Financial Planning Association® (FPA®). Over the past 15 years, she has worked in various capacities, including writing and editing. Andrus has worked for several notable publications and outlets and spent more than seven years as the executive managing editor at ALM Media, publisher of Investment Advisor magazine and ThinkAdvisor.com. Before that, she was online editor for Summit Professional Networks, where she oversaw newsletter development for four magazines, including Benefits Selling, Senior Market Advisor, Boomer Market Advisor, and Bank Advisor.
