In particular, the proposed regulation clarifies the circumstances under which an employer group, association, or professional employer organization (PEO) may sponsor a workplace retirement plan. In particular, the proposed regulation clarifies that employer groups or associations and PEOs can, when satisfying certain criteria, constitute “employers” within the Employee Retirement Income Security Act (ERISA) for purposes of establishing or maintaining an individual account “employee pension benefit plan.”
Advocates of the changes say open MEPs are one of the primary ways to address the retirement-plan gap that is rampant among employees of small businesses.