Bill to expand MEP usage introduced in Senate
The U.S. Capitol in Washington
With just a few days remaining on the congressional calendar, a bipartisan bill to expand the use of open multiple-employers plan has been introduced in the Senate.
The Improving Access to Retirement Savings Act, introduced Dec. 18 by Senate Finance Committee Chairman Chuck Grassley, R-Iowa, Sen. Maggie Hassan, D-N.H., and Sen. James Lankford, R-Okla., would allow more groups to participate in MEPs by expanding coverage to include 403(b) plans. It also clarifies that small employers that join a MEP may take the small employer pension plan startup credit for their first three years in a MEP, regardless of how long the MEP has been in existence.
The measure follows legislation that would let nonprofits participate in pooled employer plans
December 21, 2020 2 MINS
Several Senators on Friday introduced a bill that would let 403(b) plans participate in MEPs, part of a wider push by Congress to allow nonprofits into pooled retirement plans.
Along with permitting 403(b)s to participate in multiple-employer plans, the Improving Access to Retirement Savings Act would also allow small businesses to claim a start-up credit for the first three years as part of MEPs. The legislation also seeks to provide a 9.5-month grace period for correcting errors associated with automatic enrollment and contribution escalation, the senators noted in their announcement of the bill.