According to the DOL, there were 647,019 single-employer defined contribution plans sponsored by employers in 2015. Of those, 568,622 were plans with fewer than 100 participants. Only 80 of those plans were multiple employer DC plans. (Photo: Shutterstock)
The prospect of removing existing barriers to employer participation in Open Multiple Employer Plans could quickly impact millions of existing participants in small and midsized 401(k) plans.
“It would bring instant gratification,” said Louis Harvey, president and CEO of DALBAR, a Boston-based consultancy to the financial services industry.
“Overnight you can reduce the expense of a plan, and on a larger scale you improve services to employees. But the biggest deal is employers can reduce their fiduciary risk on plans,” he added.
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Nick Thornton
Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.
