The Department of Labor finalized a rule Thursday establishing requirements for registering as a pooled plan provider for pooled employer plans, known as PEPs.
The rule requires an initial registration filing and supplemental filings to report any changes, information about each specific pooled employer plan before initiating operations, and information on specified reportable events. It also requires a final filing once the last pooled employer plan has been terminated and ceased operations.
PEPs were created with the signing of the SECURE Act in December, which made it easier for employers in unrelated businesses to join open multiple employer retirement plans for their employees. Employers were previously discouraged from doing so because they would each still have to file separate Form 5500s and conduct separate annual audits, requirements that were eliminated with the new legislation.
PEPs will be available starting Jan. 1 and each PEP must have a pooled plan provider designated as a named fiduciary, plan administrator and the person responsible for specified administrative duties.