The Employee Benefits Security Administration (EBSA) and Department of Labor have issued proposed regulations to promote and expand the ability of employer groups, associations and professional employer organizations (PEOs) to sponsor a workplace retirement plan.

"[T]he proposed regulation clarifies that employer groups or associations and PEOs can, when satisfying certain criteria, constitute 'employers' within the meaning of section 3(5) of the Employee Retirement Income Security Act (ERISA) for purposes of establishing or maintaining an individual account 'employee pension benefit plan' within the meaning of ERISA section 3(2)," EBSA explains.

"As an 'employer,' a group or association can sponsor a defined contribution retirement plan for its members, as can a PEO sponsor a plan for client employers (collectively referred to as 'MEPs')," EBSA notes. "The proposed regulation would allow different businesses to join a MEP, either through a group or association or through a PEO. The proposal would also permit certain working owners without employees to participate in a MEP sponsored by a group or association." MEPs are referred to as "Association Retirement Plans" in the EBSA press release.

The 100-page text of the proposed regulations is posted here. 

An EBSA press release is posted here.

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