TCATA Submits Comments on Proposed Association Retirement Plans Rule
TCATA CEO David Cotter recently submitted comments to the U.S. Department of Labor’s Office of Regulations and Interpretations supporting that Department’s proposed rule on association retirement plans. The rule is a significant step toward expanding retirement coverage for employees of small employers and for working owners.
In his comments, Mr. Cotter notes that small businesses (less than 100 employees) can face significant financial and administrative burdens when trying to implement and maintain retirement plans. Multiple Employer Plans (MEPs) are a possible tool to help small businesses overcome many of these burdens. One of the several advantages to MEPs is the centralized function that the MEP sponsor can provide, with costs shared among several employers. Substantial economies of scale and cost efficiencies can be achieved through the proposed rule, making it more attractive than stand-alone plans.