More retirement-related regulatory news for plan sponsors, including links to detailed information.
PBGC modifying rule on payment of premiums
The Pension Benefit Guaranty Corporation (PBGC) issued a notice announcing it is modifying the collection of information under its regulation on “Payment of Premiums” and intends to request that the Office of Management and Budget (OMB) approve the revised collection.
To learn more, click here.
Final rule on association retirement plans and multiple employer plans issued
The Department of Labor (DoL) released a final rule that expands access to affordable quality retirement saving options by clarifying the circumstances under which an employer group, association, professional employer organization (PEO) may sponsor a multiple employer workplace retirement plan, as opposed to providing an arrangement that constitutes multiple separate retirement plans.
The final regulation does this by clarifying that employer groups or associations and PEOs can, when satisfying certain criteria, constitute “employers” within the meaning of the Employee Retirement Income Security Act (ERISA) for purposes of establishing or maintaining an individual account “employee pension benefit plan” within the meaning of ERISA. As an “employer,” a group, association, or PEO can sponsor a defined contribution retirement plan for its members (collectively referred to as “multiple employer plans” or “MEPs” unless otherwise specified).
To read the entire final rule, click here.
Proposed rule on open multiple employer plans issued
The DoL released a proposed rule requesting information regarding the definition of “employer” in section 3(5) of ERISA. The document mainly seeks comments on whether to amend regulations to facilitate the sponsorship of “open MEPs” by persons acting indirectly in the interests of unrelated employers whose employees would receive benefits under such arrangements. The term “open MEP” refers to a single defined contribution retirement plan that covers employees of multiple unrelated employers.
To read the entire proposed rule, click here.