By one expert's read, the proposal is the largest expansion possible given Labor's limited authority, which regulators reference in the document. (Photo: Shutterstock)
The Labor Department's proposal to broaden access to workplace retirement plans by way of Multiple Employer Plans does not include a pathway for so-called Open MEPs, which allow small business owners with no shared business association or interest to pool workers under one defined contribution plan.
The proposal aims to clarify a 2012 sub-regulatory action by the Obama administration that required employers to share commonality, or a nexus, such as membership in a trade organization, in order to benefit from the full administrative and fiduciary relief MEPs promise.
Labor's proposal continues that policy. But it also extends employer participation in MEPs to unrelated businesses within the same state or municipality.
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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.
