Department of Labor Issues Final Rule on Association Retirement Plans
The rule is effective Sept. 30, 2019
The Department of Labor announced a final rule this week that makes it easier for small businesses that belong to the same trade association to offer retirement plans to their employees.
Under the DOL rule, association retirement plans (ARPs) could be offered by associations of employers in the same city, county, state or metropolitan area—or by a particular industry nationwide.
By expressly permitting these new plan arrangements, the administration is enabling small businesses to offer retirement benefit packages comparable to those offered by large employers. The rule is expected to reduce administrative costs through economies of scale and strengthen small businesses’ hand in negotiations with financial institutions and other service providers. The rule is effective Sept. 30, 2019.
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