SECURE 2.0: The SECURE Act and Multiple Employer Plans — The Future of Retirement Savings?

The SECURE Act and its successor, SECURE 2.0, have significantly reshaped the landscape of employer-sponsored retirement plans by making Multiple Employer Plans (MEPs) and Pooled Employer Plans (PEPs) more accessible. Historically, small businesses struggled to offer retirement benefits due to high administrative costs and fiduciary responsibilities. MEPs provided some relief by allowing employers with shared industry ties to pool resources, but restrictions such as the "one bad apple" rule limited their adoption.

The SECURE Act introduced PEPs, removing the requirement for common ownership and offering greater flexibility, while SECURE 2.0 extended these benefits to 403(b) plans. As a result, interest in MEPs and PEPs has surged among employers of all sizes, with potential cost savings and fiduciary outsourcing making them an attractive alternative to traditional single-employer plans.

This shift suggests that MEPs and PEPs could soon become the standard for workplace retirement savings.