Executive Order on Strengthening Retirement Security in America

On August 31, 2018, President Trump signed an executive order on retirement policy.  The Executive Order directs the Departments of Labor and Treasury to consider regulations or guidance expanding the availability of MEPs.

Department of Treasury MEP Rulemaking

On July 3, 2019, the Department of Treasury and Internal Revenue Service issued a notice of proposed rulemaking relating to the tax qualification of plans maintained by more than one employer or MEPs.  The proposed regulation would provide an exception to the “unified plan rule” in the event of a failure by an employer participating in the plan to satisfy a qualification requirement or to provide information needed to determine compliance with a qualification requirement.

The American Retirement Association’s comments to this proposed rulemaking will be forthcoming.

Department of Labor MEP Rulemaking

On October 23, 2018, the Department of Labor issued a proposed rule to expand access to affordable quality retirement savings options by clarifying the circumstances under which an employer group or association or a professional employer organization (PEO) may sponsor a MEP.

On December 21, 2018, the American Retirement Association filed a comment letter to this proposed rule.

On July 31, 2019, the Department of Labor issued a final rule to expand access to affordable quality retirement savings options by clarifying the circumstances under which an employer group or association or a professional employer organization (PEO) may sponsor a MEP.

On July 31, 2019, the Department of Labor issued a request for information to seek comments on whether to amend its regulations to facilitate the sponsorship of “open MEPs”, defined as a single defined contribution retirement plan that covers employees of multiple unrelated employers.

The American Retirement Association’s comments to this request for information will be forthcoming.