top of page

DOL Expands Retirement Plans

On Monday, July 29, 2019, the Department of Labor (DOL) issued a final ruling on Multiemployer Retirement Plans (MEPs) to expand access to retirement savings options.

The final regulation clarifies that, depending on certain criteria, employer groups, associations, or Professional Employment Organizations (PEOs) can constitute “employers” under the Employee Retirement Income Security Act of 1974 (ERISA) and can establish or maintain an individual employee retirement benefit plan.

The DOL proposed this rule in October last year, after President Donald Trump issued an Executive Order on Strengthening Retirement Security in America.

In the DOL press release, the DOL announced that Association Retirement Plans (ARPs) "could be offered by associations of employers in a city, county, state or a multi-state metropolitan area, or in a particular industry nationwide. In addition to association sponsors, the final rule includes a regulatory safe harbor for Professional Employer Organizations (PEOs) (human resources companies that contractually assume certain employment responsibilities for their employer clients), noting that the final rule helps PEOs with a pathway to be certain they are offering a valid MEP."

"Many small businesses would like to offer retirement benefits to their employees but are discouraged by the cost and complexity of running their own plans,” Acting Secretary of Labor Patrick Pizzella says in a statement. “Association Retirement Plans offer valuable retirement security to small businesses' employees through their retirement years.”

Learn More: DOL Fact Sheet

When Does This Go Into Effect?

September 30, 2019

Still To Come: In May of 2019, the U.S. House of Representatives approved the Setting Every Community up for Retirement Enhancement Act of 2019 – more commonly referred to as the Secure Act. That bill includes, among other things, establishing tax-favored MEPs and goes to the Senate next for consideration.

Need More Information?

AJM Associates partners with several licensed Financial Advisors and Professional Employment Organizations in assisting clients with their healthcare and employment practices. Finding the right fit for you and your organization is just a phone call away.

7 views0 comments

Recent Posts

See All


bottom of page