You might have seen coverage in the news media about money market reform. Since these rules go into effect in October, the topic is getting more coverage. The SEC has imposed these new rule amendments to address potential financial instability caused by money market funds. The changes are complicated and include liquidity fees and redemption gates; however, the rules apply to mutual fund companies—not retirement plan sponsors.

That being said, plan sponsors will have a duty to analyze their money market and other capital preservation options. You should understand the nuances of the holdings, review alternative options, and make changes as needed. Your financial professional can help you with this process.

Remember, if the plan has a money market strategy with liquidity fees and redemption gates, you must also disclose this information to participants.