Executive Order 13847 (dated August 31, 2018) was released today for publication in the Federal Register. This executive order directs the U.S. Treasury Department and Department of Labor to consider how to revise or eliminate rules imposing unnecessary costs and burdens on businesses that would discourage employers, especially on small businesses, from offering retirement plans to employees.
The executive order [PDF 175 KB] provides that within 180 days, the Labor Department is to review policies and consider whether to issue proposed rules clarifying and expanding circumstances under which employers, especially on small and mid-size businesses, may sponsor or adopt multiple employer plans (MEP) as an option for their employees.
The Treasury Department is under a similar order and time period for proposing guidance regarding the circumstances under which an MEP satisfies the Code’s qualification requirements. Both agencies have a year to collaborate on how to make required retirement plan disclosures more understandable and to reduce costs and burdens for distribution.
<p>© 2018 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.</p> <p>KPMG International Cooperative (“KPMG International”) is a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm.</p>
The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.