Strengthening Retirement Security in America

[Federal Register Volume 83, Number 173 (Thursday, September 6, 2018)]

[Presidential Documents]

[Pages 45321-45323]

From the Federal Register Online via the Government Publishing Office [www.gpo.gov]

[FR Doc No: 2018-19514]

Presidential Documents

Federal Register / Vol. 83, No. 173 / Thursday, September 6, 2018 /

Presidential Documents

[[Page 45321]]

Executive Order 13847 of August 31, 2018

Strengthening Retirement Security in America

By the authority vested in me as President by the

Constitution and the laws of the United States of

America, it is hereby ordered as follows:

Section 1. Policy. It shall be the policy of the

Federal Government to expand access to workplace

retirement plans for American workers. According to the

Bureau of Labor Statistics, 23 percent of all private-

sector, full-time workers lack access to a workplace

retirement plan. That percentage increases to 34

percent when part-time workers are taken into account.

Small businesses are less likely to offer retirement

benefits. In 2017, approximately 89 percent of workers

at private-sector establishments with 500 or more

workers were offered a retirement plan compared to only

53 percent for workers at private-sector establishments

with fewer than 100 workers. Enhancing workplace

retirement plan coverage is critical to ensuring that

American workers will be financially prepared to

retire.

lishments with 500 or more

workers were offered a retirement plan compared to only

53 percent for workers at private-sector establishments

with fewer than 100 workers. Enhancing workplace

retirement plan coverage is critical to ensuring that

American workers will be financially prepared to

retire.

Regulatory burdens and complexity can be costly and

discourage employers, especially small businesses, from

offering workplace retirement plans to their employees.

Businesses are sensitive to the overall expense of

setting up such plans. A recent survey by the Pew

Charitable Trusts found that 71 percent of small- and

medium-sized businesses that do not offer retirement

plans were deterred from doing so by high costs; 37

percent cited high costs as their main reason for not

offering such a plan. Federal agencies should revise or

eliminate rules and regulations that impose unnecessary

costs and burdens on businesses, especially small

businesses, and that hinder formation of workplace

retirement plans.

Expanding access to multiple employer plans (MEPs),

under which employees of different private-sector

employers may participate in a single retirement plan,

is an efficient way to reduce administrative costs of

retirement plan establishment and maintenance and would

encourage more plan formation and broader availability

of workplace retirement plans, especially among small

employers.

rivate-sector

employers may participate in a single retirement plan,

is an efficient way to reduce administrative costs of

retirement plan establishment and maintenance and would

encourage more plan formation and broader availability

of workplace retirement plans, especially among small

employers.

Similarly, reducing the number and complexity of

employee benefit plan notices and disclosures currently

required would ease regulatory burdens. The costs and

potential liabilities for employers and plan

fiduciaries of complying with existing disclosure

requirements may discourage plan formation or

maintenance. Improving the effectiveness of required

notices and disclosures and reducing their cost to

employers promote retirement security by expanding

access to workplace retirement plans.

Outdated distribution mandates may also reduce plan

effectiveness by forcing retirees to make excessively

large withdrawals from their accounts--potentially

leaving them with insufficient savings in their later

years.

In light of the foregoing it shall, therefore, be the

policy of the Federal Government to address these

problems and promote retirement security for America's

workers.

Sec. 2. Improving Retirement Security. (a) Expanding

access to Multiple Employer Plans and Other Retirement

Plan Options.

In light of the foregoing it shall, therefore, be the

policy of the Federal Government to address these

problems and promote retirement security for America's

workers.

Sec. 2. Improving Retirement Security. (a) Expanding

access to Multiple Employer Plans and Other Retirement

Plan Options.

(i) The Secretary of Labor shall examine policies that would:

(1) clarify and expand the circumstances under which United States

employers, especially small and mid-sized businesses, may sponsor or

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adopt a MEP as a workplace retirement option for their employees, subject

to appropriate safeguards; and

(2) increase retirement security for part-time workers, sole proprietors,

working owners, and other entrepreneurial workers with non-traditional

employer-employee relationships by expanding their access to workplace

retirement plans, including MEPs.

(ii) Within 180 days of the date of this order, the Secretary of Labor

shall consider, consistent with applicable law and the policy set forth in

section 1 of this order, 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'' within the meaning of section 3(5) of the Employee Retirement

Income Security Act of 1974 (ERISA), 29 U.S.C. 1002(5).

ith applicable law and the policy set forth in

section 1 of this order, 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'' within the meaning of section 3(5) of the Employee Retirement

Income Security Act of 1974 (ERISA), 29 U.S.C. 1002(5).

(b) Qualification Requirements for Multiple

Employer Plans. Within 180 days of the date of this

order, the Secretary of the Treasury shall consider

proposing amendments to regulations or other guidance,

consistent with applicable law and the policy set forth

in section 1 of this order, regarding the circumstances

under which a MEP may satisfy the tax qualification

requirements set forth in the Internal Revenue Code of

1986, 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 Secretary of the Treasury shall

consult with the Secretary of Labor in advance of

issuing any such proposed guidance, and the Secretary

of Labor shall take steps to facilitate the

implementation of any guidance, as appropriate and

consistent with applicable law.

ary to meet those

requirements. The Secretary of the Treasury shall

consult with the Secretary of Labor in advance of

issuing any such proposed guidance, and the Secretary

of Labor shall take steps to facilitate the

implementation of any guidance, as appropriate and

consistent with applicable law.

(c) Improving the Effectiveness of and Reducing the

Cost of Furnishing Required Notices and Disclosures.

Within 1 year of the date of this order, the Secretary

of Labor shall, in consultation with the Secretary of

the Treasury, complete a review of actions that could

be taken through regulation or guidance, or both, to

make retirement plan disclosures required under ERISA

and the Internal Revenue Code of 1986 more

understandable and useful for participants and

beneficiaries, while also reducing the costs and

burdens they impose on employers and other plan

fiduciaries responsible for their production and

distribution. This review shall include an exploration

of the potential for broader use of electronic delivery

as a way to improve the effectiveness of disclosures

and to reduce their associated costs and burdens. If

the Secretary of Labor finds that action should be

taken, the Secretary shall, in consultation with the

Secretary of the Treasury, consider proposing

appropriate regulations or guidance, consistent with

applicable law and the policy set forth in section 1 of

this order.

iated costs and burdens. If

the Secretary of Labor finds that action should be

taken, the Secretary shall, in consultation with the

Secretary of the Treasury, consider proposing

appropriate regulations or guidance, consistent with

applicable law and the policy set forth in section 1 of

this order.

(d) Updating Life Expectancy and Distribution

Period Tables for Purposes of Required Minimum

Distribution Rules. Within 180 days of the date of this

order, the Secretary of the Treasury shall, consistent

with applicable law and the policy set forth in section

1 of this order, examine the life expectancy and

distribution period tables in the regulations on

required minimum distributions from retirement plans

(67 Fed. Reg. 18988) 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.

Sec. 3. General Provisions. (a) Nothing in this order

shall be construed to impair or otherwise affect:

(i) the authority granted by law to an executive department or agency, or

the head thereof; or

(ii) the functions of the Director of the Office of Management and Budget

relating to budgetary, administrative, or legislative proposals.

(b) This order shall be implemented consistent with

applicable law and subject to the availability of

appropriations.

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by law to an executive department or agency, or

the head thereof; or

(ii) the functions of the Director of the Office of Management and Budget

relating to budgetary, administrative, or legislative proposals.

(b) This order shall be implemented consistent with

applicable law and subject to the availability of

appropriations.

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(c) This order is not intended to, and does not,

create any right or benefit, substantive or procedural,

enforceable at law or in equity by any party against

the United States, its departments, agencies, or

entities, its officers, employees, or agents, or any

other person.

(Presidential Sig.)

THE WHITE HOUSE,

August 31, 2018.

[FR Doc. 2018-19514

Filed 9-5-18; 11:15 am]

Billing code 3295-F8-P