House committee passes open MEP bill

House committee passes open MEP bill
Insurance groups say the measure, which now heads to the full chamber for a vote, doesn't go far enough.
SEP 14, 2018

The House Ways and Means Committee passed a retirement savings bill Thursday that seeks to expand access to workplace retirement plans. The Family Savings Act of 2018, introduced by Rep. Mike Kelly, R-Pa., was approved in a 21-14 vote. Perhaps most important for retirement plan advisers is the provision about open multiple-employer plans, known as "open MEPs." The measure would allow more small businesses to band together to offer a common retirement plan, with the aim of reducing costs, administrative work and fiduciary responsibility. Congress and the retirement industry have seized on open MEPs as a way to expand access to workplace plans. Insurance groups, including the Insured Retirement Institute and American Council of Life Insurers, said the legislation falls short because it omits two provisions — a change to annuity safe-harbor rules and a requirement for lifetime-income illustrations. The legislation is part of a three-bill package making up Republicans' Tax Reform 2.0 initiative, meant partly to make permanent some of the temporary changes to individual tax rates codified in the new tax law.

Latest News

The 2025 InvestmentNews Awards Excellence Awardees revealed
The 2025 InvestmentNews Awards Excellence Awardees revealed

From outstanding individuals to innovative organizations, find out who made the final shortlist for top honors at the IN awards, now in its second year.

Top RIA Cresset warns of 'inevitable' recession amid tariff uncertainty
Top RIA Cresset warns of 'inevitable' recession amid tariff uncertainty

Cresset's Susie Cranston is expecting an economic recession, but says her $65 billion RIA sees "great opportunity" to keep investing in a down market.

Edward Jones joins the crowd to sell more alternative investments
Edward Jones joins the crowd to sell more alternative investments

“There’s a big pull to alternative investments right now because of volatility of the stock market,” Kevin Gannon, CEO of Robert A. Stanger & Co., said.

Record RIA M&A activity marks strong start to 2025
Record RIA M&A activity marks strong start to 2025

Sellers shift focus: It's not about succession anymore.

IB+ Data Hub offers strategic edge for U.S. wealth advisors and RIAs advising business clients
IB+ Data Hub offers strategic edge for U.S. wealth advisors and RIAs advising business clients

Platform being adopted by independent-minded advisors who see insurance as a core pillar of their business.

SPONSORED Compliance in real time: Technology's expanding role in RIA oversight

RIAs face rising regulatory pressure in 2025. Forward-looking firms are responding with embedded technology, not more paperwork.

SPONSORED Advisory firms confront crossroads amid historic wealth transfer

As inheritances are set to reshape client portfolios and next-gen heirs demand digital-first experiences, firms are retooling their wealth tech stacks and succession models in real time.