DOL Issues Proposed Registration Requirements for Pooled Plan Providers | Practical Law

DOL Issues Proposed Registration Requirements for Pooled Plan Providers | Practical Law

The Department of Labor (DOL) released a proposed rule that would provide registration requirements for pooled plan providers of pooled employer plans, as authorized under the Setting Every Community Up for Retirement Enhancement Act (SECURE Act).

DOL Issues Proposed Registration Requirements for Pooled Plan Providers

Practical Law Legal Update w-027-1265 (Approx. 3 pages)

DOL Issues Proposed Registration Requirements for Pooled Plan Providers

by Practical Law Employee Benefits & Executive Compensation
Published on 25 Aug 2020 • USA (National/Federal)
The Department of Labor (DOL) released a proposed rule that would provide registration requirements for pooled plan providers of pooled employer plans, as authorized under the Setting Every Community Up for Retirement Enhancement Act (SECURE Act).
On August 20, 2020, the DOL released a proposed rule that would provide registration requirements for pooled plan providers of pooled employer plans under the SECURE Act.
The SECURE Act amended ERISA to establish a new type of multiple employer plan (MEP) known as the pooled employer plan, which allows unrelated employers to join together to participate in one MEP (see Practice Note, Multiple Employer Retirement Plans (MEPs): Pooled Employer Plans Under SECURE Act). A pooled employer plan must be administered by a pooled plan provider, who will serve as a named fiduciary of the plan.
Under the SECURE Act, pooled plan providers:
  • May start operating pooled employer plans on January 1, 2021.
  • Are required to register with the Secretary of Labor and the Secretary of the Treasury before they begin operations.
The proposed rule specifies how pooled plan providers will register with the DOL. Pooled plan providers that register with the DOL according to the proposed rule will satisfy the SECURE Act's requirement to register with the Treasury Department.
The proposed rule would establish a reporting structure for pooled plan providers that includes:
  • An initial registration filing providing basic information about the pooled plan provider.
  • Supplemental filings to report changes in information in the initial filing.
  • Providing information about each pooled employer plan before initiating operations.
  • Notifying the DOL of specific reportable events related to the pooled plan provider and the plans it sponsors, including significant financial and operational events.
  • A final filing once the pooled plan provider has ceased operating all pooled employer plans.
The proposed rule would require all pooled plan provider registrations to be electronically filed with the DOL. The initial registration statement would be due at least 30 days, but no more than 90 days, before operating as a pooled plan provider. These registrations would be submitted using a new form, EBSA Form PR (Pooled Plan Provider Registration). The proposed rule includes a sample of the Form PR and accompanying instructions.
The DOL is seeking comments on the proposed rule. Comments are due 30 days after the proposed rule is published in the Federal Register.

Practical Implications

Pooled plan providers should familiarize themselves with the reporting requirements provided by the proposed rule.