Federal Register: DOL Adopts Final Rule Allowing Use of Multiple Employer Plans

The DOL final rule allowing small businesses to join together to sponsor 401k plans for their employees was published in the Federal Register.

As previously covered, the final rule permits small businesses to offer retirement savings benefits under "multiple employer plans." These plans provide retirement benefit packages similar to those offered by large employers. The DOL stated that it expects the final rule to (i) reduce administrative costs and (ii) strengthen the position of small businesses in negotiations with financial institutions and other service providers.

The final rule goes into effect on September 30, 2019.