On August 31, 2018, President Trump signed an executive order on "Strengthening Retirement Security in America," directing the Departments of Labor and the Treasury to consider issuing regulations and guidance that would make it easier for businesses to join together to offer Multiple Employer Plans (MEPs). Treasury is also instructed to review the rules on required minimum distributions from retirement plans.

Speaking at the signing in Charlotte, North Carolina, President Trump said nearly half of Americans working at small businesses with fewer than 100 employees have not had access to 401(k) or other retirement plans. He said small businesses will no longer be at a competitive disadvantage because the executive order will reduce regulatory barriers and allow small businesses to band together to create association retirement plans.

Labor Secretary Alex Acosta, speaking at the event, said the plan would cut administrative expenses and increase portability for employees moving from one small business to another.

The executive order requires the Labor Department to clarify and expand the circumstances under which employers may sponsor or adopt a MEP and, within 180 days, consider whether to issue a notice of proposed rulemaking, other guidance, or both, that would clarify when a group or association of employers or other appropriate business or organization could be an "employer" under the Employee Retirement Income Security Act of 1974 (ERISA).

The executive order requires Treasury, in consultation with Labor, to, within 180 days, consider proposing amendments to regulations or other guidance regarding the circumstances under which a MEP may satisfy tax qualification requirements, including the consequences if one or more employers that sponsored or adopted the plan fails to take one or more actions necessary to meet those requirements.

The EO directs DOL to examine ways to expand retirement savings opportunities for workers in non-traditional employer-employee relationships, e.g., "gig economy" workers.

It also directs the Secretary of Labor, in consultation with the Secretary of the Treasury, to complete a review of actions that could be taken by regulation to improve and reduce the cost of furnishing required notices, including the broader use of electronic delivery.

Additionally, the Department of the Treasury is to review, also within 180 days, the rules on required minimum distributions from retirement plans to see if retirees could keep more money in 401(k)s and Individual Retirement Accounts for longer, a change a White House fact sheet said could allow retirees to spread retirement savings over a longer period of time. The executive order said Treasury shall examine the life expectancy and distribution period tables in the regulations on required minimum distributions from retirement plans and determine whether they should be updated to reflect current mortality data and whether such updates should be made annually or on another periodic basis.

House Ways and Means Committee Chairman Kevin Brady (R-TX) today released a statement saying in part: "Today's action by President Trump highlights the need for reforms that enhance the retirement security of families and workers in our communities. The Administration's commitment to removing regulatory barriers to retirement savings aligns with the efforts of Republicans in Congress in advancing legislation that supports our shared objective of enhancing retirement savings."

Rep. Virginia Foxx (R-NC), chairwoman of the Committee on Education and the Workforce, and Rep. Tim Walberg (R-MI), chairman of the Subcommittee on Health, Employment, Labor, and Pensions, issued the following joint statement after President Trump signed the executive order to strengthen retirement security: "Retirement security is a major concern for American families. Congress is working diligently to modernize the nation's retirement system, and today's executive order is a huge step forward in opening access to retirement savings options for the millions of Americans who work at small businesses in communities across the country. Expanding access and modernizing disclosure requirements are important ways the federal government can strengthen retirement security, and we commend the Administration for taking action."

The executive order is attached.

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ATTACHMENT

Executive Order