The president’s executive order put multiple employer plans front-and-center. Here’s what happens now.
Pete Swisher, from Pentegra Retirement Services, and 401(k) Specialist’s discussion revolves around the recent developments and future prospects of Multiple Employer Plans (MEPs) in the context of retirement plans.
Key points include:
- Presidential Executive Order: A recent executive order has prompted the Department of Labor and the Treasury to consider new rules, expected to be released soon, that will likely promote the formation of Association Retirement Plans similar to Association Health Plans.
- Cost Misconception: Swisher addresses a common misconception that MEPs will drastically reduce the cost of retirement plans for employers. He clarifies that while aggregated plans may offer discounts, the basic costs of running a retirement plan (like payroll processing and compliance) remain.
- Current and Future MEP Structures: There are existing structures and pooled employer arrangements in use today, and the industry anticipates new regulations, possibly within a month and a half, that could further evolve MEPs. Swisher also mentions the ongoing discussions around the Retirement Enhancement and Savings Act (RESA).
For more information, you can visit the 401k Specialist website.
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots.
