The IRS and Treasury have issued a notice of public hearing on proposed regulations relating to the tax qualification of plans maintained by more than one employer, often referred to as multiple employer plans (MEPs).
The public hearing is being held on Wednesday, December 11, at 10:00 a.m. The IRS must receive speakers’ outlines of the topics to be discussed at the public hearing by Monday, November 25.
In July, the Department of Labor (DOL) released final rules on Association Retirement Plans permitting employers to connect with associations of employers in a city, county, state, or a multi-state metropolitan area, or in a particular industry nationwide to provide retirement plans for their employees. While considered a positive step in closing the retirement plan coverage gap, some were still disappointed that the final rules stopped short of allowing for what is called “open multiple employer plans,” which would allow employers without a common nexus to band together to offer retirement plans for employees.Allowing open MEPs, however, is a key component of the Setting Every Community Up for Retirement Enhancement Act (SECURE Act). That bill remains stalled in the U.S. Senate.