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05/19/2022 -
Could Sponsoring a Pooled Employer Plan Grow Your Business?
While large financial institutions with significant expertise in retirement plan administration are widely expected to sponsor most pooled employer plans (PEPs), other firms (such as franchisors, gig economy employers, joint venture enterprises, private equity firms, and smaller financial services companies) may benefit from sponsoring a PEP or making available a “white labeled” PEP product.
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10/06/2020 -
Bringing PEPs into Perspective: DOL’s Proposed Rule on Pooled Plan Provider Registration and Other Guidance, Bloomberg Tax
Morgan Lewis partners Craig Bitman, Daniel Kleinman, and Michael Richman and associate Michael Gorman authored a Bloomberg Tax article about the SECURE Act and the US Department of Labor’s proposed regulations for the registration process of pooled plan providers, which was released on September 1, 2020. In the article, they discuss the proposed process, supplemental filings, and what companies need to know next.
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10/05/2020 -
IRS Notice 2020-68 Provides SECURE Act and Miners Act Guidance
Notice 2020-68 from the Internal Revenue Service provides clarifications for sponsors and administrators of 401(k) plans and other qualified retirement plans, 403(b) plans, and 457(b) governmental plans on certain provisions in the Setting Every Community Up for Retirement Enhancement Act of 2019 and the Bipartisan American Miners Act of 2019. The notice also provides valuable guidance for sponsors of multiple employer plans and pooled employer plans, as described below.
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09/04/2020 -
DOL Proposes Rules on Pooled Plan Provider Registration Process
Like many of our clients, we have been anxiously awaiting guidance from regulators on pooled employer plans, which may enter the retirement plan marketplace as soon as January 1, 2021. The most anticipated guidance is likely that addressing the SECURE Act’s requirement that pooled plan providers register with the US Department of Labor and Internal Revenue Service before beginning operations as pooled plan providers. The DOL recently issued proposed regulations addressing this issue.
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September 2020 -
PEP Rally! Explaining the Excitement for Pooled Employer Plans, New York University Review of Employee Benefits and Executive Compensation
The SECURE Act allows for the creation of a new type of qualified retirement plan, the pooled employer plan or “PEP,” beginning on January 1, 2021. While it includes the framework necessary for pooled plan providers (also known as “PPPs”) to begin establishing and operating PEPs, the SECURE Act left unanswered many legal and practical questions about PEPs.
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08/31/2020 -
DOL Issues Interim Final Rule on Lifetime Income Illustrations
The US Department of Labor issued an Interim Final Rule on August 18 to implement “lifetime income illustrations,” which must be provided to defined contribution plan participants pursuant to the Setting Every Community Up for Retirement Enhancement Act of 2019 (SECURE Act). This LawFlash summarizes the key provisions of the Rule and includes some preliminary observations.
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06/24/2020 -
Information Requested on Pooled Employer Plan Prohibited Transaction Issues: Act Quickly to Help Shape Exemptive Relief, ML BeneBits
The US Department of Labor (DOL) published a request for information (RFI) on June 18 in the Federal Register on the subject of pooled employer plans (PEPs).
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05/08/2020 -
Stay Tuned – DOL to Issue RFI on Pooled Employer Plans , ML BeneBits
While much of the attention by regulators has been focused on the coronavirus (COVID-19) response and CARES Act/FFCRA guidance, they have not forgotten about the SECURE Act’s introduction of pooled employer plans (PEPs) (centrally administered defined contribution plans that can be joined by multiple unrelated employers).
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02/26/2020 -
The SECURE Act: Considerations for Employers, BenefitsPRO
Morgan Lewis partner Lisa Barton authored a BenefitsPRO article about what employers need to know about the SECURE Act. In the article, Lisa discussed changes to 401(K) eligibility, lifetime income options in defined contribution plans, and plan distribution rules.
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02/21/2020 -
SECURE Act May Pave Way to More Lifetime Income Opportunities in Defined Contribution Plans, ML BeneBits
Ever since defined contribution plans have come to dominate the retirement plan landscape, both plan sponsors and policymakers have grappled with how to help employees take a lifetime’s worth of savings and convert it into a sustainable source of retirement income. One way to help participants meet retirement income needs is to integrate guaranteed income products into defined contribution plan lineups. Fiduciaries have expressed concern, however, about potential liability they may face for the selection of annuity providers. The SECURE Act, signed into law by President Donald Trump on December 20, 2019, may help allay those concerns.
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02/05/2020 -
SECURE Act Provides RMD Statement Relief for IRA Providers
In Notice 2020-06 the Internal Revenue Service (IRS) provides helpful relief for IRA providers that were unable to cancel the required minimum distribution (RMD) statements they had set to go out to IRA owners turning age 70½ in 2020. Due to changes made by the Setting Every Community Up for Retirement Enhancement Act of 2019 (SECURE Act), there are no RMDs for 2020 for this group of IRA owners. The SECURE Act made other significant changes to IRAs, as discussed in our previous LawFlash in greater detail.
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01/08/2020 -
The Good News and Really Bad News for IRA Owners Under the SECURE Act – Next Steps for IRA Providers
The recently enacted Setting Every Community Up for Retirement Enhancement Act of 2019 (the SECURE Act) makes significant changes to individual retirement accounts and individual retirement annuities (IRAs). These important changes generally start in 2020 and touch just about every IRA provider and IRA owner. These changes will have significant effects on retirement, estate, and tax plans that use IRAs.
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12/26/2019 -
SECURE Act Increases Access to Retirement Plans with 'Pooled Employer Plans'
For more than seven years now, policymakers and taxpayers have clamored for Congress to change the law to permit “open” multiple employer plans (MEPs) – that is, retirement plans that are adopted by multiple unrelated employers (including employers with no nexus or common association) and may be sponsored and administered by an employer plan sponsor or by an unrelated firm.
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12/23/2019 -
SECURE Retirement Legislation Becomes Law: Overview of Provisions Affecting Retirement Plans
The SECURE Act—the most impactful retirement plan legislation since the Pension Protection Act of 2006—was included in the bipartisan spending bill signed by US President Donald Trump on December 20, 2019. The SECURE Act will advance the goals of increasing access to defined contribution plans, promoting lifetime income options, and facilitating retirement plan design and administration.
