On August 31, 2018, President Trump signed an Executive Order which directed the Department
of Labor (the "DOL") and the Department of Treasury to
consider regulations or guidance that would expand the availability
of multiple employer plans ("MEPs"). A MEP is a type of
retirement plan (e.g., a 401(k) plan) that different
businesses can create by joining together and pooling their
resources so as to ultimately reduce provider fees. The DOL has now
released the text of the proposed regulations which are designed to
accomplish such.
Historically, the DOL tried to limit the circumstances under
which groups of employers could safely access the advantages of
participating in a MEP. The proposed regulations clarify that
employers may band together into employer groups or professional
employer organizations ("PEOs") to sponsor a retirement
plan if they meet certain requirements. Importantly, the
MEP sponsor (e.g., the employer group, PEO, etc.) –
not the individual
