Multiple Employer Plans - The Latest Word on MEPs and PEPs

Trucker Huss

Interest in multiple employer plans (MEPs) continues to grow. As directed by the President, the Department of Labor has issued final regulations permitting employer associations and PEOs (professional employer organizations) to sponsor MEPs. Concurrently, the IRS has issued proposed regulations providing MEP sponsors with a mechanism to deal with the “one-bad-apple rule” — so they can avoid plan disqualification as a result of a defect caused by a single participating employer.

Congress also continues to give serious consideration to legislation that would significantly expand the reach of MEPs by creating a new type of plan referred to as a pooled employer plan (PEP).

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