The Setting Every Community Up for Retirement Enhancement Act (SECURE Act) established a new structure whereby a group of unrelated employers could participate in a single defined contribution plan as of January 1, 2021. Pooled Employer Plans (PEPs) must be administered by a Pooled Plan Provider (PPP), which must register with the Department of Labor (DOL) before commencing operations.
On August 20, 2020, the DOL issued a proposed rule regarding the registration process for PPPs that includes:
Initial registration filing. The PPP is required to make an initial registration filing 30-90 days prior to beginning operations. According to the DOL, a PPP begins operations when it starts marketing PEPs publicly. However, a PPP does not have to make an initial filing prior to engaging in preliminary business activities. The initial registration filing includes “basic identifying information about the pooled plan provider and some information, for example, about its structure, affiliated service providers, marketing activities, and pending legal or regulatory proceedings.”
Supplemental reports. Prior to operating a PEP, a PPP must submit a supplemental filing for each PEP that includes the name of the PEP, identification information for the trustee, and the plan EIN. A supplemental filing is also required within 30 days if there is:
- Any change to the information in the initial registration filing;
- A significant change to the PPP’s corporate or business structure;
- A written notice of an administrative enforcement action related to an employee benefit plan received by the PPP;
- A legal finding of fraud or dishonesty by a court or agency; or
- A notice of any criminal charges against the PPP or any of its directors, officers, or employees related to an employee benefit plan.
