The 2025 NAPA 401(k) Summit in Las Vegas was the largest ever, with over 3,000 industry professionals, including 1,400 advisors at a conference that is “Built by Advisors, for Advisors”. There were 50+ education sessions on a cross section of relevant topics, numerous networking opportunities, and about 150 exhibitors serving the retirement industry. Each year is more beneficial as we know more people, meet new people and learn more.
Among the many valuable discussions, several key sessions stood out for the depth of insight they provided across legislative trends, plan design, advisor-sponsor dynamics, and more.
A Legislative Outlook from Washington
As tradition dictates, the Summit began with a “Fireside Chat” centered on the legislative environment in Washington, with a particular focus this year on the pending tax legislation. There was a description of the reconciliation process, which involves “reconciling” the law to the budget that congress has already passed. Now that Congress has set the target, they must agree on what is needed to achieve it. The process requires 51 votes to pass the Senate, which is commonly used by a new president with a legislative majority. There was consensus that the Memorial Day deadline is aggressive.
Lifetime Income in 401(k)s: Are We Bold Enough?
A well-attended session was centered on the status of the ongoing effort to include Lifetime Income Options in 401(k)s. Adoption remains relatively low, and there was a view that the industry needs to be bolder in talking about annuities. One stumbling block that was discussed was the issue of who selects the underlying insurer, how many insurers are included and what type of monitoring is required. The issue of compensation for including income solutions was discussed and what would justify it: Do you have in-house expertise? How is this viewed philosophically…. product development or fiduciary duty? It was agreed that there would be more momentum in income solutions if advisors were compensated, because there is a lot of work involved.
Navigating Mergers: What Plan Sponsors Need to Know
The implications of mergers on plans and participants were also discussed. It was emphasized that in the event of a merger, plan sponsors need to be aware of the actions needed to minimize expenses depending upon the type of transaction. A stock sale does not cause a separation of service for employees, because the buyer assumes all of the assets and liabilities of the seller, including retirement plans. In the event of an asset sale, however, the buyer may or may not acquire the seller’s retirement plan and the acquired employees are viewed as new hires by the buyer. The buyer can choose to 1.) Terminate the seller’s plan prior to the acquisition 2.) Maintain separate plans or 3.) Merge the plans. Each of these has advantages & disadvantages, as well as different expense implications and it is important for firms to take these into consideration.
“Inside the Mind” of the Plan Sponsor
Understanding how plan sponsors evaluate and work with their advisors was the focus of another well-attended session. In general, the advisor is considered a key member of the team, particularly on the investment consulting side. However, a lot of plans inherit their advisor. In these cases, they will talk openly about their needs and wants and rely upon data to evaluate the relationship. Eventually, they will conduct a thorough RFP involving other people at the firm. Even if the data is strong, the relationship still has to work…. Sometimes it just doesn’t. At a high level, the panel agreed that less formal meetings with shorter agendas are better, with a preference for pre-meetings in advance.
Looking Ahead
It was good to connect with so many people in the retirement sector at NAPA this year. There continues to be significant opportunities for growth in space, and we look forward to attending the 2026 Summit in Tampa.
DISCLAIMER This presentation is intended for information and discussion purposes only and does not constitute legal or professional investment advice. Statements of fact and opinions expressed are those of the participants individually and, unless expressly stated to the contrary, are not the opinion or position of Harbor View Advisors, LLC (“HVA”). The information in this presentation was compiled from sources believed to be reliable for informational purposes only. HVA does not endorse or approve, and assumes no responsibility for, the content, accuracy or completeness of the information presented.
