June 2025

This update provides the latest on SECURE 2.0 Act changes for Roth contributions and introduces a new payroll integration tool. It also highlights the upcoming quarter's participant communications and our free financial education website. If you are part of the BGCA Money Purchase Master Pension Plan, learn more about another way for your participants to save. 

Upcoming Events
Join us at HR/Finance Exchange, August 4-5 in Atlanta or at the Regional Conference-Pacific, September 9-10 in Las Vegas!

SECURE 2.0 Act Update
Roth Only Catch-Up for Highly Paid Individuals
The Roth only catch-up provision for certain highly paid individuals (HPIs) is coming in 2026! In general, participants who are 50 and older with FICA wages in the prior year of $145,000 (indexed annually) or more can make catch-up contributions only as Roth after-tax.

Take time now to ask your payroll provider how they will handle pre-tax deferral elections once participants reach the regular IRS limit. We are ready to partner with you and your payroll provider to identify your HPIs and make certain any catch-up contributions are in the required form of Roth after-tax.  

We are also working on participant communications for those affected by this change.

API Payroll Integration
Milliman is rolling out a new API based integration tool for secure HRIS and payroll submissions through Finch. Finch's third-party technology platform allows for either 180° or 360° integration with 200+ payroll platforms. 

• Finch powers HRIS & payroll intergrations. Through the Milliman Plan Sponsor site, clients will utilize the Finch Connect tool, which will authorize automated passage of payroll data, eliminating the need for manual intervention.
• Best-in-class encryption protocols. Finch’s infrastructure enforces the use of TLS 1.2 to encrypt data in transit between your application and Finch. All data is encrypted using AES 256-bit encryption.
• Secure cloud infrastructure. Finch is hosted on industry-leading cloud infrastructure, leveraging years of safety enhancements to maximize performance, resilience and speed of deployment.

There is no fee for this service. This functionality will be rolled out in phases during 2025.

A Financial Wellness Boost For Your Participants
Your participants have access to healthyfinancialoutcomes.com, a financial education site maintained by our recordkeeper, Milliman, that has recently been thoughtfully redesigned to improve financial literacy and address both the emotional and practical aspects of managing money. The goal is for participants to feel confident and informed so they can take the next step that’s best for them on their financial journey. Key highlights of the refreshed platform include:

• More Engaging, Intuitive Navigation: Making it easier for participants to find the information they need.
• Recommended Guides: Allowing participants to dive into topics that interest them the most or choose subjects based on their financial priorities and/or life stage.
• Extensive Menu of Articles, Videos, and Events: Catering to various learning preferences; Milliman’s platform offers a rich library of resources.

If you are part of the BGCA Money Purchase Master Pension Plan (the "Pension Plan"), you’re already offering participants top-tier investment choices. Now, take the next step and unlock a world of savings by transitioning to the BGCA 401(k) Safe Harbor Master Plan (the "401(k) Plan")! 

Why Switch to the 401(k) Plan?

• Flexible Contributions: Allow participants to contribute both pre-tax and Roth after-tax employee contributions.
• Automatic Savings Boost: Effortlessly enroll employees in the Plan at a set contribution rate, with automatic annual increases to maximize their savings up to a set deferral percentage.
• Customizable Matching: Offer matching contributions at your discretion for each selected contribution period.
• Participant Loans and Distributions: The Plan may elect to allow participant loans, which may only be taken from the participant’s employee contribution account. In addition, the Plan may allow for hardship and other in-service distributions.

There is no conversion fee when you elect to change from the Pension Plan to the 401(k) Plan.

Contact Christopher Martin at christopher.martin@milliman.com to learn more about how you can make the switch and start saving today.