Advisers and broker/dealers hoping to work with open multiple employer plans now have a short window to offer their perspectives to the Department of Labor and the Internal Revenue Service.
Tag: open MEPs
Aon has announced the launch of a new pooled employer plan (PEP) to be recordkept by Voya.
Responses to the request for information (RFI) will help the Department of Labor (DOL) evaluate the need for a proposal on new prohibited transaction exemptions related to pooled employer plans.
Providers of open MEPs are likely to create many different versions, and it has yet to be determined how much fiduciary responsibility plan sponsors will shoulder, MassMutual says
Allowing open MEPs is a key component of the Setting Every Community Up for Retirement Enhancement Act (SECURE Act)—a bill remains stalled in the U.S. Senate.
While falling short of the open multiple employer plan expansion industry advocates are calling for, the DOL’s expansion of “association retirement plans” could be a significant step toward improving retirement readiness in the U.S. work force.
The SECURE Act could make ‘open’ MEPs a reality—and a benefit to advisers if they are proactive.
While there is some disappointment that it did not include a provision for open MEPs, any option that could appeal to small businesses to offer a retirement plan is seen as a positive.
In addition to the final ruling, the department has also released a 16-page request for information (RFI) on open MEPs.
Two-thirds of small businesses that currently do not offer a retirement plan say that they would consider doing so through an open MEP, Empower learned in a survey.
Besides a lengthy Finance Committee hearing discussing the popular RESA legislation, the day on Capitol Hill also brought news of the introduction of the new Retirement Security and Savings Act.
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.
A panel of expert witnesses from across the financial services domain discussed shortcomings and opportunities for improvement in the U.S. retirement savings system; they urged House members to embrace bipartisanship and commonsense solutions.