As the effective date for the new “open” multiple employer plans (MEPs) nears, a major insurer and professional services firm has announced the launch of a new offering.
Aon’s Pooled Employer Plan—the new name for the brand of so-called “open” MEPs under the SECURE Act—will rely on Voya Financial as recordkeeper “after a competitive bid process,” while utilizing its own investment acumen to “help create higher performing, more efficient 401(k) plans,” according to a press release.
Aon says that the PEP will help enable better outcomes for participants at lower fee levels, “reflecting the leveraged nature of investing across the whole pool of assets in the plan.” The program will be available January 1.
While the SECURE Act was passed into law in December 2019, it was just last week that the U.S. Department of Labor announced its Request for Information (RFI) on Prohibited Transactions involving Pooled Employer Plans (PEPs) under the Setting Every Community Up for Retirement Enhancement (SECURE) Act and other multiple employer plans. The American Retirement Association had previously provided a list of potential PEP and PPP (Pooled Plan Provider) issues to the Employee Benefit Security Administration.
A table providing descriptions and effective dates for the provisions contained in the Setting Every Community Up for Retirement Enhancement (SECURE) Act, along with additional retirement-based revenue provisions that were incorporated into the Further Consolidated Appropriations Act, 2020 (H.R. 1865) is available at https://www.napa-net.org/news-info/daily-news/key-secure-act-provisions-and-effective-dates.
