Strengthening Retirement Security in America
Sep 6, 2018
Signed by: Donald Trump
Signed on: Aug 31, 2018
Published on: Sep 6, 2018
Sep 6, 2018
Signed by: Donald Trump
Signed on: Aug 31, 2018
Published on: Sep 6, 2018
Summary
Makes it easier for businesses, especially small ones, to offer retirement plans to their employees by reducing rules and costs.
What problem does this solve?
Many workers, especially at small businesses, do not have retirement plans because they are too expensive and complicated for employers to set up. This order tells government agencies to find ways to lower costs and simplify rules, making it easier for more companies to offer these plans.
What does this order do?
Expands access to Multiple Employer Plans (MEPs)
Directs the Secretary of Labor to find ways to let more businesses, especially small ones, join together to offer a single retirement plan, reducing costs and paperwork for each company.
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Improving the effectiveness of and reducing the cost of furnishing required noti
Simplifies retirement plan notices
Requires the Secretary of Labor to review the required notices sent to employees about their retirement plans to make them easier to understand and cheaper to produce, including using email.
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Updating life expectancy and distribution period tables for purposes of require
Updates rules for retirement withdrawals
Tells the Secretary of the Treasury to review and possibly update the life expectancy tables that decide how much money retirees must withdraw from their accounts each year.
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Qualification requirements for multiple employer plans
Clarifies tax rules for shared plans
Asks the Secretary of the Treasury to look at the tax rules for Multiple Employer Plans to make sure that if one company in the plan makes a mistake, it doesn't cause problems for all the other companies.
Who does this affect?
- Small business owners
- Private-sector employees
- Part-time workers
What is the real world impact?
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Helps small businesses offer retirement benefits
Reduces the costs and complex rules that stop many small businesses from providing retirement plans, allowing them to better compete for employees with larger companies.
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Increases retirement savings for more workers
Aims to help more Americans save for retirement by making it possible for their employers to offer plans, which could lead to better financial futures for many families.
When does this start?
This order sets several deadlines for government agencies to review rules and propose changes within the next year.
Review of shared retirement plans (MEPs)
Within 180 days of August 31, 2018, the Secretary of Labor must consider proposing new rules to expand access to Multiple Employer Plans.
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Qualification requirements for multiple employer plans
Review of tax rules for MEPs
Within 180 days of August 31, 2018, the Secretary of the Treasury must consider proposing changes to tax rules for Multiple Employer Plans.
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Text:
Section:
Header:
Updating life expectancy and distribution period tables for purposes of require
Review of life expectancy tables
Within 180 days of August 31, 2018, the Secretary of the Treasury must examine the life expectancy tables used for required minimum distributions from retirement plans.
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Text:
Section:
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Improving the effectiveness of and reducing the cost of furnishing required noti
Review of retirement plan notices
Within 1 year of August 31, 2018, the Secretary of Labor must complete a review on how to make retirement plan notices more understandable and less costly.