In a statement published on Sept. 22, Investment Company Institute’s (ICI) President and CEO Paul Schott Stevens expressed support on behalf of ICI for the U.S. Senate Committee on Finance’s approval of a provision that will allow Open Multiple Employer Plans (MEPs) in order to reduce expenses and administrative challenges facing employers wishing to offer retirement plans for their staff.
“ICI strongly supports the Open MEPs proposal and applauds the Finance Committee for approving it,” ICI President and CEO Paul Schott Stevens said. “Expanding MEPs will help lessen administrative burdens and compliance costs so that more American workers can gain access to retirement savings plans at work. The current restrictions governing MEPs are simply outdated for today’s economy, and passage of this provision is a positive step for employees and employers alike.”
Open MEPs will eliminate a “commonality of interest” requirement, enabling separate employers to collectively sponsor defined contribution plans for their employees.
“This common-sense provision builds on the strengths of the current strong, voluntary, employment-based retirement system at a national level,” Stevens said. “It is far preferable to state-based initiatives that could fragment our retirement system, lack vital investor protections, and could leave taxpayers liable for future costs. We thank Chairman Hatch and Ranking Member Wyden for their leadership on this and on other provisions of the package that make it easier for employers to offer plans and for Americans to prepare for retirement.”