A bipartisan bill to expand the use of open multiple-employer plans has been reintroduced in the Senate.
The Improving Access to Retirement Savings Act, introduced Wednesday by Sens. Chuck Grassley, R-Iowa, Maggie Hassan, D-N.H., and James Lankford, R-Okla., would allow more groups to participate in MEPs by expanding coverage to include 403(b) plans. It also clarifies that small employers that join a MEP may take the small employer pension plan startup credit for their first three years in a MEP, regardless of how long the MEP has been in existence.
The bill, which was originally introduced in December, late in the previous congressional session, also allows for a grace period to correct minor errors in administering automatic enrollment and escalation features when groups are enrolling in a MEP — provided they are corrected within 9½ months of the end of the year in which the mistakes were made.
"This legislation will help more Americans save for their retirement while also giving our small businesses and non-profits another avenue to invest in their employees' future financial security," Mr. Grassley said in a news release. "Government should be doing everything it can to help Americans save more of their own hard-earned money. I'm proud to author this bipartisan bill that will help more Americans retire with peace of mind and independence."
Groups including the American Benefits Council, American Retirement Association, Insured Retirement Institute and American Council of Life Insurers support the bill.