PEOs and Retirement Benefit Legislation and Regulations
The SECURE Act
On December 19, 2019, the Senate approved legislation (HR 1865) that included the Setting Every Community Up for Retirement Enhancement Act of 2019 (The SECURE Act). The SECURE Act creates a new provision within ERISA to allow companies to offer retirement benefits to unrelated small businesses through a pooled employer plan (PEP), which is a type of multiple employer plan (MEP) that uses a new entity called a “pooled plan provider.” The new law deems PEPs single employer ERISA plans and creates a new legal structure to govern such plans.
This new law includes almost thirty additional provisions aimed at encouraging the adoption of employer-sponsored plans and lifetime income options, altering plan distribution rules, easing administrative requirements, and improving certain types of defined benefit plans. A number of the provisions are effective with the New Year. Davis & Harman have prepared a detailed summary of the SECURE Act to explain the provisions of this new law.
Learn how the SECURE Act impacts PEOs