By Nationwide Retirement Solutions

The SECURE Act (Setting Every Community up for Retirement Enhancement Act) signed into law on Dec. 20, 2019, opened a new era of opportunity for retirement plan participants by expanding the ability for plan sponsors to help participants not only plan for retirement, but also live in retirement. One way the Act will help is by making in-plan guarantees within defined contribution plans such 457(b)s and 401(a)s more accessible and portable than before.

This comes at an opportune time as American savers weather a perfect retirement storm. Given the pandemic’s impact on market volatility, consumers are much more interested than ever before1 in solutions that can provide a level of certainty and protection. Retirees are living longer and facing greater pressure to fund their own retirement, as costs for healthcare and long-term care continue to rise. Employers (plan sponsors) are looking for accessible, portable and affordable solutions to help their employees protect their savings and ensure income in retirement.

To meet this need, Nationwide announced a suite of new in-plan guarantee solutions to meet the needs of plan sponsors and participants.

“We’re confident that a suite of solutions will give plan sponsors the flexibility to select the option that’s best for their participants,” said Eric Stevenson, President of Nationwide Retirement Solutions. “Our approach is unique, by going beyond retirees’ well-established need for guaranteed income, to also address their growing need to protect principal.”

As an established industry leader serving government and corporate retirement plans, as well as a top provider of annuities, Nationwide is uniquely equipped to address this challenge.  It has the in-house expertise to develop new solutions and deep partnerships across the industry to bring them to market.

Upon announcing a suite of in-plan guarantees in late 2020, Nationwide Retirement Solutions has seen strong momentum in plans adopting annuity-based protection and income solutions for retirement plan participants.

The momentum continues with Nationwide Indexed Principal Protection® (NW-IPP), an in-plan group fixed indexed annuity. This new investment option provides the potential for growth based on the return of a market index (subject to a cap rate) while also providing principal protection and liquidity.  Additionally, there are no investment minimums for participants wanting to allocate to NW-IPP.

There are now more than 600 plans that have adopted this solution. “The number of plans that have already adopted Nationwide Indexed Principal Protection in such a short period demonstrates the market was clearly ready for this type of solution and shows how plan sponsors recognize participants are looking for ways to protect their investments, while at the same time having the opportunity to grow their retirement nest egg,” added Stevenson. “Nationwide Indexed Principal Protection is one of the first fixed indexed annuities to be offered as an in-plan guarantee that can help participants address both of these needs.” For plan sponsors interested in learning more about NW-IPP, visit www.nrsforu.com/nwipp

Since launching NW-IPP, Nationwide continues to work with industry partners to introduce solutions offering guaranteed lifetime income. Structured as collective investment trusts (CITs), these investment options offer participants the opportunity to grow their retirement savings with the promise of generating guaranteed income in retirement – money they can’t outlive.  These solutions offer a simple experience along with useful planning tools, helping participants to worry less about running out of money in retirement.

Nationwide is excited to be able to offer solutions built to help participant plan for the future and reach their retirement goals.  To learn more about these additional solutions, contact your Nationwide representative.

1. The sixth annual Advisory Authority Survey was conducted online within the United States by The Harris Poll on behalf of Nationwide from May 27-June 25, 2020, among 1,768 financial advisers and 817 investors, ages 18+.

 Nationwide Indexed Principal Protection is a group fixed indexed annuity issued by Nationwide Life Insurance Company and held in the general account. Group fixed indexed annuities are not stock market investments and participants are not directly investing in a market index. Guarantees are backed by the claims-paying ability of the issuing insurance company. Transfers out of this contract to other funding providers are subject to certain restrictions.

 

 

 

 

 

 

 

 

Governor to keynote 2022 Legislative Conference; registration open for March 21-23 event

Gov. Gretchen Whitmer will keynote the 2022 Michigan Counties Legislative Conference, addressing a plenary session of the event on Wednesday, March 23.

Click here to begin your conference registration.

The 2022 event, co-hosted by the Michigan Association of Counties and the Michigan County Medical Care Facilities Council and held at the Radisson Hotel and Lansing Center, also will feature:

• A plenary session address by Larry Johnson, president of the National Association of Counties
• A MAC Legislative Update, led by Deena Bosworth, director of governmental affairs
• Remarks from MAC President Phil Kuyers of Ottawa County and Executive Director Stephan Currie
• Breakout sessions on current challenges for county leaders, including workforce development, the Open Meetings Act, trends in mobility on Michigan roads, American Rescue Plan spending and how to deal with stress in these stressful times
• A Legislative Reception on the evening of Tuesday, March 22, during which MAC will present its County Advocate Awards for legislative service in 2021
• A MAC “pop-up store” where members can purchase a variety of MAC-branded items to show off their county pride

The conference will be an in-person event, though MAC plans to livestream select breakout sessions on Facebook.

Your conference registration fee provides access to all conference events, snacks at the Radisson Hotel on Monday afternoon, the Legislative Reception with appetizers and beverages, two breakfasts at the Lansing Center (Tues-Wed), lunch on Tuesday at the Lansing Center and a boxed lunch on Wednesday you can take with you on your journey home.

County commissioners attending the conference will receive credits toward certification through MAC’s County Commissioner Academy.

Medical care facility personnel also will earn Continuing Education credits. Visit the conference page for details.

“We appreciate the governor taking time to speak to our members this year as we continue to foster deeper state-county partnerships,” said Currie. “We are working closely with both venues to enhance COVID safety and will monitor state and local health directives that could affect the conference.”

MAC and MCMCFC strongly encourage members to register early for the conference and for hotel space. For the latest conference news and updates, visit the MAC Conferences Page.

 

U.S. Supreme Court puts hold on vaccine mandate for large employers, allows mandate for health facilities to operate

On Thursday afternoon, the U.S. Supreme Court halted the Biden administration’s vaccine mandate for employers with more than 100 people but left in place the one for federally funded health facilities.

Below is an analysis from the firm of Cohl, Stoker & Toskey, P.C. on what this means for county entities going forward:

“On Jan. 13, 2022, the U.S. Supreme Court issued opinions on both the CMS Vaccine Mandate, and the OSHA Emergency Temporary Standard. The opinions were issued less than one week after the Court held oral arguments on Jan. 7. 2022.

“(1) In a 5-4 decision, the Court granted the Federal government’s emergency applications to stay the Missouri and Louisiana District Court injunctions judicially enjoining the CMS vaccine mandate in 25 states. Therefore, CMS may now enforce the mandate nationwide, including in Michigan. The validity of the mandate will be determined in further proceedings in the lower Courts.

“(2) In a 6-3 decision, the Court granted the challengers’ emergency applications to re-impose the stay of the OSHA Emergency Temporary Standard vaccine/testing mandate that had been dissolved by the Sixth Circuit in a 2-1 decision on Dec. 17, 2021.  Therefore, the OSHA ETS may not be enforced pending the outcome of litigation in the lower courts. 

“As to the CMS Vaccine Mandate, facilities subject to the mandate must:

“(1) comply with Phase 1 of the CMS mandate, i.e., staff at all health care facilities included within the regulation must have received, at a minimum, the first dose of a primary series or a single dose COVID-19 vaccine prior to staff providing any care, treatment or other services for the facility or its patients, by Jan. 27, 2022; and

“(2) comply with Phase 2 of the CMS mandate, i.e., staff at all health care provider and supplier types included in the regulation must complete the primary vaccination series or have obtained an exemption, by Feb. 28, 2022.”

Counties, of course, should consult with their own counsel on any issues specific to their situation. MAC will provide additional updates as litigation continues.

 

Bills for 4-year terms signed into law

Starting in 2024, candidates in Michigan for county commissioner will run for 4-year terms, as Gov. Gretchen Whitmer has signed new term legislation: Public Acts 121-122 of 2021.

The largest change affecting county commissioners since 1968 is the result of Senate Bill 242, by Sen. Ed McBroom (R-Dickinson), and SB 245, by Sen. Jeremy Moss (D-Oakland).

Since 1968, voters in Michigan have elected county commissioners to two-year terms from geographic districts. Michigan has been one of only five states that has required two-year terms for all commissioners, even though all other elected county offices have four-year terms.

“We are immensely pleased to end 2021 on such a high note,” said MAC Executive Director Stephan Currie. “Creating equality in terms for commissioners has been a MAC goal for many years; I’m so proud of our advocacy team for their work on this, ably assisted by MAC Board directors and members.”

 

Legislature sets up future funding crisis on Personal Property Tax

MAC joined with other local government groups this week to urge the Legislature to address the consequences of a massive Personal Property Tax exemption which lawmakers rushed through Lansing in a late-night session on Tuesday.

While the Legislature voted for House Bill 5351 without a clear understanding of its effects on local governments, estimates of the impact are as high as $75 million each year. This results through the bill’s lifting of the PPT exemption threshold for small taxpayers from $80,000 to $180,000 in true cash value.

Lawmakers did also vote for a $75 million reimbursement for the first year of this exemption scheme (which starts in 2023), but they did not provide for the years beyond. As the statement from MAC, the Municipal League and the Michigan Townships Association said, “(T)he ongoing erosion of funding that supports local services will be permanent unless the Legislature and the governor fulfill their commitment to find revenue replacements.”

While MAC is not arguing against efforts to combat the economic effects of the COVID-19 pandemic, it will push lawmakers to permanently replace funds from what has been counties’ most reliable and most relied upon revenue source.

HB 5351 now moves to the desk of Gov. Gretchen Whitmer, who is expected to sign it.

For more information on this issue, contact Deena Bosworth at bosworth@micounties.org.