In a new Field Assistance Bulletin, the DOL addresses a set of common errors made by multiple employer plans as they attempt to comply with a reporting rule introduced in 2014.
A final rule would take care of one item being considered in legislation proposing the ability for employers to join open multiple employer plans (MEPs).
Eighty-nine percent of small employers surveyed said they have a high level of trust in retirement plan providers, compared to 53% for state governments.
This year, the IRI has also issued a state advocacy blueprint calling on states to focus on educating individuals about the importance of retirement planning and encourage federal policymakers to enact proposals expanding access to private-sector retirement plans.
Speakers during a webcast said passage of legislation to allow for open MEPs will be a disruptor affecting nearly all stakeholders in the retirement industry, including broker/dealers and advisers.
Several commenters argued that without changes, the proposed rule would have little impact on expanding retirement plan coverage for American workers.
The expanded distribution of the program seeks to take advantage of the Department of Labor’s recent focus on expanding MEP coverage, the firm says.
These plans allow small businesses to join together to offer defined contribution retirement savings benefits.
The news comes as a large number of ERISA lawsuits are playing out in the district and appellate courts across the U.S., testing whether 403(b) plan sponsors of major universities have sufficiently exercised their bargaining power or allowed inefficient recordkeeping arrangements to persist over long periods of time.
In a wide-ranging interview with PLANADVISER, DCIIA leaders Lew Minsky and Peg Knox outline their lead policy priorities for the remainder of 2018, including a focused push around “open MEPs.”
The newly created multiple employer plan (MEP) will help plan sponsors reduce their administrative burdens.
In addition to expanding access to MEPs, the bill would facilitate lifetime income disclosure and clarify the current annuity selection safe harbor.