DOL Submits Request for Information About PEPs to OMB

The request, made July 1, indicates the Department of Labor is preparing PEP-related reports, per provisions in the SECURE and SECURE 2.0 Acts.

Reported by Emily Boyle

The Department of Labor has submitted to the White House’s Office of Management and Budget a request for information on pooled employer plans.

According to the OMB’s regulatory review, the guidance request is in the pre-rule stage, pending regulatory review, as of July 7.

Section 101 of the Setting Every Community Up for Retirement Act of 2019 amended the Employee Retirement Income Security Act of 1974 to introduce PEPs as a type of multiple employer pension benefit plan, administered by a pooled plan provider. The provision also grants the secretary of labor authority to issue guidance on its implementation.

“The Department of Labor’s Employee Benefits Security Administration intends to start by consulting with a diverse set of stakeholders, including employers and employees and their representatives and retirement plan service and investment providers, to explore areas where regulatory or other guidance would facilitate establishment and operation of pooled employer plans,” the guidance project description states.

The project will also account for Section 344 of the SECURE 2.0 Act of 2022, which requires the DOL to study PEPs, including the number of PEPs, participants, fees, disclosures and enforcement actions, according to the project description. The provision also mandates that the DOL make recommendations to Congress on how PEPs can be improved through legislation, due no later than five years following the January 2023 enactment of SECURE 2.0.

Generally, the OMB has up to 90 days to either approve the request or send it back for modification. There is no timeline for the release of the project.

PEPs surpassed $10 billion in assets in 2024, according to global analytics firm Cerulli Associates.

Tags
Department of Labor (DOL), PEPs, pooled employer plans,
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