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
Tag: open MEPs
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.
LIMRA anticipates equity markets will slow modestly this year, while interest rates will continue to rise; the organization expects conditions to promote growth in annuity purchases by long-term investors.
Even as large employers embrace cutting edge features in their retirement plans, LIMRA data shows small businesses continue to struggle when it comes to offering even basic retirement benefits.
The majority of small business owners agreed that offering a retirement plan for employees is “the right thing to do."
The consensus in early commentary is that the new House proposal appears to closely align with bipartisan legislation with potential majority support in the Senate.
Those industry stakeholders disappointed by the limited scope of the proposed regulations can take heart in the fact that DOL staff calls for detailed commentary on ways the proposal could be expanded, including into the area of “open MEPs” and “corporate MEPs.”
The text of the regulation is still forthcoming, but the Office of Management and Budget has completed its review; so far, we know the regulation is viewed as “major” and “economically significant.”