DOL Issues Proposed Regulations on Pooled Plan Providers

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.

Amended filings. PPPs would be allowed to correct unintentional registration errors or omissions by making an amended filing within “a reasonable period” of discovering the error or omission.

Final filing. Once a PPP has stopped operating all PEPs, it would be required to make a final filing.

All PPP registrations must be filed electronically via the DOL’s Form 5500 filing system using the new EBSA Form PR. 

HBL helps plan sponsors stay on top of the legislative and regulatory changes that apply to their businesses, ensuring that benefit plans and processes are updated to stay in compliance. To learn more, responsive team today at 678-439-6236.

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Hall Benefits Law, LLC

HBL offers employers comprehensive legal guidance on benefits in mergers and acquisitions, Employee Stock Ownership Plans (ESOPs), executive compensation, health and welfare benefits, healthcare reform, and retirement plans. We counsel a wide spectrum of clients including small, mid-sized, and large companies, 401(k) investment advisors, health insurance brokers, accountants, attorneys, and HR consultants, just to name a few. HBL is passionate about advising clients, and we are dedicated to our mission: to provide comprehensive, personalized, and practical ERISA and benefits legal solutions that exceed client expectations.

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