House Committee Passes Bill to Overhaul Retirement Plans

The House Ways and Means Committee has passed a bill that overhauls rules for retirement plans to allow workers to contribute more, and for a longer period, and give incentives for employers to increase 401(k) participation.

The Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019 increases the contribution cap to 15% from 10% for employees enrolled in safe harbor plans, and repeals the rule that prohibits contributing to a traditional IRA after age 70½.

“Americans currently face a retirement income crisis, with too many people in danger of not having enough savings to maintain their standard of living and avoid sliding into poverty,” Ways & Means Committee Chairman Richard Neal said in a release. “The SECURE Act goes a long way in addressing this problem by making it easier for Americans to save.”

Because automatic enrollment is shown to increase employee participation and higher retirement savings, the proposed legislation creates a new tax credit of up to $500 per year to employers to defray startup costs for new 401(k) plans and SIMPLE IRA plans that include automatic enrollment. The credit is in addition to the plan start-up credit allowed under current law and would be available for three years.

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The credit would also be available to employers who convert an existing plan to an automatic enrollment design. Increasing the credit for plan start-up costs is intended to make it more affordable for small businesses to set up retirement plans.

The bill also increases retirement plan portability by allowing qualified defined contribution plans, section 403(b) plans, or governmental section 457(b) plans to make a direct trustee-to-trustee transfer to another employer-sponsored retirement plan.

Long-term, part-time workers would also be allowed to participate in 401(k) plans under the proposed bill. Under current law, employers may exclude employees who work fewer than 1,000 hours per year when providing a defined contribution plan to their employees.

But under the SECURE Act, the bill will require employers maintaining a 401(k) plan to have a dual-eligibility requirement under which an employee must complete either one year of service of at least 1,000 hours worked, or three consecutive years of service where the employee completes at least 500 hours of service. This provision is intended to help close the retirement pay gender gap as women are more likely than men to work part-time.

The proposed legislation would also raise the age at which retirees are required to being taking their minimum distributions to 72 from 70½. The 70½ requirement was first applied in the early 1960s and has never been adjusted to account for increases in life expectancy.

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Congress Mulls Multiemployer Pension Bailout

Tags: 401(k), 401(k) Plan, House Ways & Means Committee, Pension, SECURE Act

Man Group Hires Jon Rickert to Lead European Real Estate Debt Team

Man Group has appointed Jon Rickert as head of European private debt to support the ongoing expansion of its global private markets business, Man GPM. Rickert will lead the commercial and residential real estate debt team as it expands its activity in key euro-denominated real estate markets and seeks to capitalise on lending opportunities.

Rickert joins from GAM, where he led the real estate debt business for the last three years.

“What attracted me was our shared emphasis on conservative investment positioning given we are in a late stage of the cycle,” he said. “Senior secured real estate loans, particularly in the euro-area, may offer a defensive credit investment for institutional clients and present significant benefits over liquid fixed income.”

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Man Global Private Markets focuses on investments in private markets including real and corporate assets ‎across the capital structure globally.

Clearlake Capital Group Announces Team Promotions and Additions

Clearlake Capital Group, L.P. has named five Clearlake veterans as partners and/or managing directors, made several other promotions within the firm, and added new senior-level hires to the team.

The Clearlake team members promoted to partner and/or managing director include Fred Ebrahemi, partner, managing director, general counsel, and chief compliance officer; Dan Groen, managing director; James Pade, partner and managing director; Arta Tabaee, managing director; and Pedro Urrutia, partner, managing director, and chief financial officer.

Vikram Abraham and Brad Kottman have been promoted to senior associate.

Clearlake also announced new additions to the team, including Tony La Rosa, managing director, O.P.S.; Shalini Bala Subramaniam, managing director; Martin Arzac, managing director; and Amanda Fields-Schuler.

Emad Rajaie Joins DoubleLine Capital to Head Middle East Operations

Emad Rajaie has joined DoubleLine Capital LP as head of the firm’s Middle East relationship management.

Rajaie comes to DoubleLine from PIMCO, where he worked for 10 years, based in London, and was co-head of the fixed-income investment manager’s business in the Middle East and Africa.

“The Middle East is a region of strategic importance to DoubleLine,” said Jeffrey Gundlach, CEO and chief investment officer of DoubleLine Capital. “In particular, the Gulf states, with their large reserves in US dollars, require the best in investment management services.”

DoubleLine plans to open an office in the Middle East soon.

Rajaie has 14 years of experience in the financial sector. Before PIMCO, he served as a consultant at Booz & Co. (now part of PricewaterhouseCoopers) and PricewaterhouseCoopers. He holds a Master of Public Administration from Harvard University, an MBA from Saint Louis University, and a Bachelor of Computer Engineering from Concordia University.

Masami Katakura Appointed Chairwoman and CEO of Ernst & Young ShinNihon LLC

Ernst & Young announces the election of Masami Katakura as the new chairwoman and chief executive officer of Ernst & Young ShinNihon LLC.

Katakura was elected to lead the assurance firm at a time when EY as an organization continues its further digitalization and globalization.

“Being the first woman to lead a large audit firm speaks volumes about Masami’s dedication to quality, people, and EY clients,” said Mark Weinberger, Ernst & Young’s global chairman and CEO. “I am hopeful she will pave the way for many more women leaders in Japan and across the globe.”

Katakura will assume her new role at the start of the new Ernst & Young financial year on July 1, when Ernst & Young Japan will integrate fully into the Ernst & Young Asia-Pacific Area.

Oliver E. Wreidt Joins DFG Investment Advisers as CEO

DFG Investment Advisers, Inc. announced that Oliver E. Wriedt has joined the firm as chief executive officer, effective immediately. Wriedt is responsible for overseeing business strategy and day-to-day management of the firm, driving product development, and leading fundraising efforts. Wriedt most recently served as Co-CEO of CIFC Asset Management.

As DFG embarks on its next phase of growth and development, it will unify the firm and its products under one brand, Vibrant. The firm has been a wholly-owned subsidiary of Vibrant Capital Partners, LLC since 2008, and manages eight CLOs and several warehouse vehicles with combined assets of $4.0 billion under the Vibrant brand.

Wriedt has 25 years of experience in lending, structuring, portfolio management, and business development.

Credit Suisse Invests in Sustainable Finance Franchise with Appointment of Global Head of ESG Strategy

Credit Suisse today announces a significant hire to its Impact Advisory & Finance (IAF) department, confirming that Daniel Wild is to take on the newly created role of Managing Director, Global Head of Environmental, Social and Governance (ESG) Strategy. He joins this role from RobecoSAM AG, where he has been Co-CEO of the investment specialist, a leading sustainable asset management firm.

Daniel is a pioneer in the sustainable finance market and brings with him vast experience in ESG and sustainability, which positions him ideally to enhance and expand Credit Suisse’s ESG franchise. He will assume leadership for the development of ESG products and services, the evolution of Credit Suisse’s ESG framework and the integration of ESG across the divisions of the bank globally.

The expertise that Daniel will bring to product development, research and quantitative analysis will equip the Group to meet the ever-growing demand from clients across wealth management, investment banking and asset management; and his appreciation of ESG regulatory trends will ensure that Credit Suisse is implementing best practices within its advisory and investment solutions.

Based in Zurich, he will start later in the year and will report to Marisa Drew, CEO, IAF.

“Since establishing the IAF department in October 2017, we have invested significantly in our franchise and have made great strides in responding to the material growth in interest from our clients for ESG and impact investing opportunities,” Drew said. “I am delighted to welcome such a deeply experienced and respected subject matter expert as Daniel to help us take our ESG offering to the next level.”

Tags: Clearlake Capital, Credit Suisse, DFG Investment Advisers, DoubleLine Capital, Ernst & Young, Man Group, People Moves