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.”
Significant transformation is happening in the small business retirement plan market; what does this mean for the fiduciary adviser community?
Mostly party-line House action this week included passage of the Family Savings Act, which features key provisions drawn directly from the popular Retirement Enhancement and Savings Act.
The president on Friday signed an executive order directing the Treasury Department to reassess required minimum distributions from 401(k) plans and ordering DOL staff to explore the possibility of allowing small businesses to join open multiple employer plans.