The U.S. Department of Labor today announced that its Employee Benefits Security Administration is soliciting public input on how to help smaller employers that want to offer retirement benefits choose a high-quality, low-cost option known as a pooled employer plan.
The request for information builds upon previous requests related to pooled employer plans, which were created by the Setting Every Community Up for Retirement Enhancement Act of 2019. The RFI provides interpretive guidance about an employer’s responsibilities when joining a PEP and offers advice on selecting a plan. The RFI also solicits information about prevailing market practices related to PEPs, which could serve as the basis for a future regulatory safe harbor that would encourage employers to join PEPs and motivate entities to offer strong and sound plans.
“The Department of Labor remains committed to helping American workers save for a secure retirement. This request for information is a key step toward identifying ways to help smaller employers lower costs and improve retirement outcomes for their employees,” said Deputy Secretary of Labor Keith Sonderling. “We’re working to deliver on President Trump’s promise to provide price relief for American families.”
Operated by entities known as pooled plan providers, PEPs are retirement savings plans adopted by two or more unrelated employers to provide retirement benefits to employees and can allow participating employers to provide benefits at a lower cost. PEPs also allow participating employers to transfer most of the administrative and fiduciary responsibilities to the pooled plan providers. All of this translates to lower costs for the retirement plan participants, which can lead to increased retirement savings.
The RFI will be posted on the department’s website and published in the Federal Register . The RFI includes a 60-day period for public comments and instructions on how to submit them.