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Association Retirement Plans (ARPs)

The Department of Labor’s (DOL) recently released final ARP regulation relaxing requirements for multi-employer plans (MEPs), requiring that employer-members of a group or association either have a principal place of business within a single metropolitan area or state, or be in the same trade, industry, profession or line of business. The primary purpose can be a multi-employer plan (MEP) sponsorship, as long as there is at least one other “substantial business purpose” (can include promotion of common business interests within the employers’ industry or geographic community). Of note: as a means to ensure that an ARP is sponsored by employers for the purpose of providing benefits, financial services firms, recordkeepers, and third-party administrators cannot participate in an association capacity.

www.drinkerbiddle.com, August 12, 2019.