401khelpcenter.com Logo

DOL Releases Proposed Rules on MEPs

    

WASHINGTON, DC, October 22, 2018 -- The U.S. Department of Labor today announced a Notice of Proposed Rulemaking to help small businesses strengthen retirement security in America.

The proposed rule would make it easier for small businesses to offer retirement savings plans to their workers through Association Retirement Plans, which would allow small businesses to band together to offer 401k plans to their employees.

"President Donald J. Trump is moving to expand quality, affordable workplace retirement plan options for America's small businesses and their employees. Many small businesses would like to offer retirement benefits to their employees but are discouraged by the cost and complexity of running their own plans," said U.S. Secretary of Labor Alexander Acosta. "Association Retirement Plans give these employers a simple and less burdensome way to offer valuable retirement benefits to their employees. The proposed rule helps working Americans -- and their families -- take care of themselves in their retirement years."

Enhancing workplace retirement savings is critical to the financial security of America's workers. Approximately 38 million private-sector employees in the United States do not have access to a retirement savings plan through their employers. Association Retirement Plans offer these workers -- and their families -- enhanced savings opportunities.

Under the proposed rule, Association Retirement Plans could be offered by associations of employers in a city, county, state, or a multi-state metropolitan area, or in a particular industry nationwide. Sole proprietors, as well as their families, would also be permitted to join such plans. In addition to association sponsors, the plans could also be sponsored through Professional Employer Organizations (PEO). A PEO is a human-resource company that contractually assumes certain employment responsibilities for its client employers.

By expressly permitting these new plan arrangements, the proposal would enable small businesses to offer benefit packages comparable to those offered by large employers. The Department expects the plans to reduce administrative costs through economies of scale and to strengthen small businesses' hand when negotiating with financial institutions and other service providers.

###

Click here for more material dealing with current trends, opinion, news, legislative action, investments, marketing, sales, consulting, and legal issues on 401k plans.

This is a press release provided by the company mentioned or its representatives. Although 401khelpcenter.com may edit the release for editorial consistency, spelling, grammar, punctuation, or other editorial issues, it is not the author of the press release. Use of any information obtained from this release is voluntary, and reliance on it should only be undertaken after an independent review of its accuracy, completeness, efficacy, and timeliness. Reference to any specific commercial product, process, or service by trade name, trademark, service mark, manufacturer, or otherwise does not constitute or imply endorsement, recommendation, or favoring by 401khelpcenter.com.


Press Center | Glossary | Privacy Policy | Terms of Use | Contact Us

Creative Commons License
This work is licensed under a Creative Commons Attribution-NoDerivatives 4.0 International License.