CIEBA testifies at ERISA Advisory Council hearing on 401(k) Brokerage Windows

Dennis Simmons, CIEBA Executive Director, and Michael Kreps, Principal at Groom Law Group, testified at a recent hearing of the ERISA Advisory Council on the topic of “Understanding Brokerage Windows in Self-directed Retirement Plans.”

Brokerage windows: low utilization but important participation tool. Utilizing data from the latest proprietary CIEBA Annual Membership Profile survey, Dennis explained that while 54% of CIEBA Members offered some form of a brokerage window, only 2.8% of plan assets are invested through the window. Dennis went on to explain that while utilization may be low, CIEBA Members still view a brokerage window option as an important feature to retain participation for savers looking for investments outside a 401(k) plan designated menu.

Labor Department encouraged to avoid impractical monitoring rules for brokerage window holdings. Both Dennis and Michael encouraged the Council to report to the DOL that while windows help participation, undue monitoring obligations would lead plans to potentially eliminate the option in their plans.

A link to the August 27, 2021 testimony and to the Key Points that CIEBA submitted for the record are linked below: 

Click Here for Key Points


 “Understanding Brokerage Windows in Self-directed Retirement Plans.”

- Dennis Simmons, CIEBA Executive Director

- Michael Kreps, Principal at Groom Law Group