CLIENT ALERT: DOL Issues Rule Allowing More Unaffiliated Employers to Participate in Association Retirement Plans
August 2, 2019 – The U.S. Department of Labor issued the final version of its “association retirement plan” rule, which makes it easier for qualifying associations of unaffiliated employers and certain “working owners” to participate in a single defined contribution plan (such as a 401(k) or profit sharing plan) sponsored by the association or by a professional employer organization. Such plans are known as multiple employer plans (“MEPs”). The final rule clarifies and generally relaxes the requirements for participation in MEPs by unaffiliated employers (including working owners) that share a sufficient common nexus.
The attached Client Alert details the criteria an association of employers must satisfy to participate in an MEP.