(Updated 12/23/2019) Late Friday evening (aboard Air Force One leaving DC for his holiday retreat), President Trump signed the spending bill that included the SECURE Act. In a bit of last-minute maneuvering in Washington, DC, the House of Representatives added the provisions from the SECURE Act to the spending bill that had to be passed by Friday to avoid a government shutdown. Although the provisions that were problematic before are still part of the mix, the political climate is such that both parties wanted political wins and neither wanted to risk being branded as the one that “allowed” or “forced” another government shutdown.
Topic Archive: Multiple Employer Plan
Welcome to the finale of our series on the Department of Labor’s new regulations, updating the definition of “Employer” under ERISA to extend the availability of multiple employer plans to more businesses.
We’ve covered a lot of ground so far:
All of us here at DWC thrive on the really geeky stuff, and some of the best discussions start with our pontifications about how different topics impact our clients and our industry. We decided to bring the best of those conversations to you, still with a touch of geekiness but also distilled into easily digested, bite-sized pieces.
What are some potential unknown risks plan sponsors may face with respect to their plans? This quarter our experts have broken down some of the most common risks facing retirement plans, and what you can do to protect yours.
- As originally published in our Q3 2019 newsletter. Didn't get it? Sign up here.
The Department of Labor’s new regulations that expand the availability of multiple employer plans cover quite a bit of ground. In previous posts, we’ve explored Association MEPs, PEO MEPs, Corporate MEPs, and working owners.
Though not technically part of the regulations themselves, the Department of Labor also addresses a grab bag of questions that came in through the comment process in the preamble. In this post, we will run through some of those items.
Thanks to the Department of Labor’s recently published regulations, we went from just having multiple employer plans top having several different types of MEPs. We’ve already covered association MEPs and PEO MEPs, so now it is time to take a quick look at what the DOL calls “corporate MEPs.”
The next item up for bids in our series on the Department of Labor’s new regulations on multiple employer plans is on professional employer organizations, more commonly referred to by their acronym: PEOs. These organizations have an interesting history when it comes to retirement plans.
Unless you’ve been on vacation somewhere off the grid, you’ve likely heard the news and read the headlines that the Department of Labor recently published new regulations that expand the availability of multiple employer plans. While that is true, what those new rules actually do is to change ERISA’s definition of the term “Employer” so that more types of organizations fit within it, thus allowing them to sponsor MEPs.
When the Department of Labor’s new multiple employer plan regulations take effect later this year, we will have three types of MEPs:
Yesterday morning while we were all sipping our first cup of Monday morning coffee, the Department of Labor published its much-anticipated final regulations expanding the availability of multiple employer plans to associations, PEOs, and self-employed individuals.
One of the drawbacks that is often cited about multiple employer plans is the so-called “one bad apple rule.” It provides that if a single participating employer in a MEP allows its part of the plan to operate in a non-compliant manner, it puts the entire plan and all of the other participating employers at risk. Although there have been numerous proposals in Congress to eliminate the one bad apple rule, none have made it across the finish line.