Pru: Pool Multiple Employer Small Plans to Cover Gap

An obstacle that Kalamarides said could be daunting for small employers is ERISA compliance which, with all the reporting, disclosure and fiduciary requirements, takes a large toll on small employers who may not have the professional knowledge or the time to adhere to all the statutes.

If small employer plans were able to pool their resources together, Kalamarides feels the main impediment for not offering employees retirement savings opportunities would disappear and plans could potentially be extended to a gaping hole of small business employees.

Kalamarides said in statement, “If multiple employer plans are to play a meaningful role in closing the retirement coverage gap, clarifications and changes in the law are necessary, including expanding multiple employer plan sponsorship, reallocating fiduciary and plan administration responsibilities and eliminating non-discrimination testing.”