The Internal Revenue Service is replacing a proposed regulation issued in 2019 with a similar plan, passed by Congress, to relieve employers’ legal exposure in pooled retirement plans.
The new proposed rule would implement portions of the 2019 SECURE Act (Pub.L.116-94) establishing pooled employer plans and limiting legal exposure for employers participating in multiple employer plans.
Under existing law, each employer in a joint plan must comply with minimum vesting standards and apply benefits equally as a single, unified plan. Just one “bad actor” employer that fails to comply disqualifies the entire plan.
Regulators introduced an exception to the unified ...
Learn more about Bloomberg Law or Log In to keep reading:
See Breaking News in Context
Bloomberg Law provides trusted coverage of current events enhanced with legal analysis.
Already a subscriber?
Log in to keep reading or access research tools and resources.