The bill introduced in the Senate is designed to address the challenges that impair adequate retirement savings. In particular, the same access to PEPs that the SECURE Act offered to small businesses would be extended to non-profit organizations. Clarification regarding when a small business can use a tax credit is provided, to help facilitate offering retirement plans to employees if they join a MEP or PEP. Another provision permits a grace period for the correction of “reasonable errors” committed by parties administering automatic enrollment and automatic escalation features when groups are enrolling in a MEP. Such errors must be corrected within nine and a half months of the end of the year in which the mistakes were made.
www.plansponsor.com; May 19, 2021.