In addition, in a new 2019 State Retirement Security Blueprint, the Insured Retirement Institute (IRI) says the creation of state-run retirement plans is the wrong approach to addressing retirement security for all Americans.
Tag: multiple employer plans
If legislation allowing for open multiple employer plans (MEPs) is passed, it will be a while before implementation, and changes it will bring will affect services and business models of nearly every stakeholder in the retirement plan industry.
The bipartisan bill, which enjoys broad industry support, would add flexibility for small businesses to join multiple employer plans, among other provisions.
The bipartisan legislation is designed to help close the $7.7 trillion retirement savings gap.
Many industry groups that submitted comments to the DOL argued that the plain language of Section 3(5) of the Employee Retirement Income Security Act (ERISA) indicates non-related employers could participate in multiple employer plans (MEPs).
Of the 66% who responded in favor of the plans, 55% stated the likelihood of lowered costs for themselves is their top reason for supporting MEPs, while 54% said they were interested in reduced fees for employees.
The hearing focused on four bipartisan proposals, and hearing witnesses expressed their support for these proposals, while some also urged legislators to move forward on the Retirement Enhancement and Savings Act of 2018 (RESA).
Speaking at the Plan Sponsor Council of America (PSCA) 71st Annual National Conference, Brodie Wood, SVP of healthcare, education and not-for-profit markets at Transamerica Retirement Solutions, discussed the efficiencies and benefits a closed MEP can offer not-for-profit 403(b) plans.
The goal is to reduce fees and administrative burdens for plan sponsors while providing better services for plan participants.
All employees would have 6% of their income contributed to a workplace retirement plan and have these contributions automatically escalated each year.
Morningstar says the U.S. can learn from the UK.