ARPs: What’s this new opportunity?
On July 29, 2019, the Department of Labor issued the final Association Retirement Plan (ARP) regulation that allows for groups or associations of employers that either are in the same trade, industry, line of business or profession or who are in the same geographic area to establish an ARP. The ARP can include both employees and working owners. The new regulation expands which Chambers and Associations can establish plans for their members, and it will provide new opportunities for small employers to offer a cost-efficient retirement plan to their employees. Under the new regulation, local, state and metropolitan Chambers can sponsor ARPs, subject to federal requirements under the Employee Retirement Income Security Act and the Internal Revenue Code.
As a longstanding advocate for expanding retirement coverage, especially for small businesses, the U.S. Chamber of Commerce believes that ARPs will offer more opportunities for retirement coverage. Whether you are a Chamber looking for help in setting up and maintaining an ARP or a business owner looking to enroll in an ARP, we are here to help.