The Department of Labor has proposed a regulation to expand access to affordable quality retirement saving options by clarifying the circumstances under which an employer group, association, or professional employer organization (PEO) may sponsor a workplace retirement plan. The proposed regulation clarifies the definition of “employers” for purposes of establishing or maintaining an individual account employee pension benefit plan. Currently, an employer or a PEO can sponsor a plan for client employers, commonly referred to as a multiple employer plan (MEP). The proposed regulation would allow different businesses to join a MEP and would allow certain working owners without employees to participate in a MEP sponsored by group or association who were not covered under the previous definition of an employers increasing the accessibility to these types of plans.

Click this link to the proposal.