President Trump signed an executive order on August 31, 2018, concerning three areas of retirement policy, including multiple employer plans (MEPs), participant disclosures, as well as required minimum distributions (RMDs).
The order directs the Secretary of Labor to consider regulation that would address the retirement coverage gap by expanding availability of multiple employer plans (MEPs) to employers, subject to appropriate safeguards. Such consideration is a component of the proposed Retirement Enhancement & Savings Act (RESA), in addition to the elimination of the “one bad apple” rule, which would prevent one participating employer from disqualifying an entire MEP.
Additionally, the order directs the DOL and Treasury Departments to consider implementing regulation or guidance that would make ERISA required participant disclosures more understandable and helpful to participants and beneficiaries, and reduce the costs associated with their production for employers and other fiduciaries, to include a broader use of electronic delivery.
Lastly, the order calls for the Secretary of the Treasury to review the required minimum distribution rules applying to individuals over age 70½, and potentially consider loosening the rules upon examination of life expectancy and distributions period tables.
www.planadviser.com; August 31, 2018; September 4, 2018.
www.plansponsor.com; September 4, 2018.