Sec. 207. Modifications of rules relating to multiple employer defined contribution plans
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Section 413 is amended by adding at the end the following: If a plan to which subsection
(c)applies is sponsored by employers that have a common interest other than having adopted the plan, or has a designated plan provider, then, except as provided in paragraph (3), the failure of the portion of the plan covering the employees of an employer maintaining the plan to satisfy any applicable qualification requirement under section 401(a) will not affect the qualification of any portion of the plan covering employees of any employer who has satisfied all such requirements. For purposes of this subsection— The term designated plan provider means the person designated under the terms of the plan as the person responsible to perform all administrative duties which are reasonably necessary to ensure that the plan, and each participating employer, meets the requirements described in paragraph (1), including conducting proper testing of such plan and employers. A person shall not be treated as a designated plan provider with respect to any plan unless— the person registers with the Secretary and provides such identifying information as the Secretary may require, and the person consents to audits by the Secretary at such times as the Secretary determines appropriate to ensure the person is performing the duties described in subparagraph (A). If the designated plan provider of a plan does not perform the duties described in paragraph (2)(A) with respect to any plan year so as to reasonably ensure the plan meets the requirements described in paragraph (1)— paragraph
(1)shall not apply to the plan for the plan year, and the determination as to whether the plan, or any participating employer, meets such requirements shall be made in the same manner as made with respect to a plan without a designated plan provider. The Secretary shall issue such guidance as the Secretary determines appropriate to carry out this subsection, including guidance to— identify the administrative duties required to be performed under paragraph (2)(A), and require, if appropriate, that the portion of the plan attributable to participating employers not meeting the requirements described in paragraph
(1)be spun off to plans maintained by such employers. . Section 3(2) of the Employee Retirement Income Security Act of 1974 is amended by adding at the end the following: A qualified multiple employer plan shall not fail to be treated as an employee pension benefit plan or pension plan solely because the employers sponsoring the plan share no common interest. For purposes of this subparagraph, the term qualified multiple employer plan means a plan described in section 413(c) of the Internal Revenue Code of 1986 which— is an individual account plan with respect to which the requirements of clauses
(iii)and
(iv)are met, and includes in its annual report required to be filed under section 104(a) the name and identifying information of each participating employer and each person designated as a designated plan provider under section 413 of the Internal Revenue Code of 1986. The requirements of this clause are met if, under the plan, each participating employer retains fiduciary responsibility for— the selection and monitoring of the person designated as the designated plan provider and the named fiduciary if different from such provider, and the investment and management of the portion of the plan's assets attributable to employees of the employer to the extent not otherwise delegated to another fiduciary. The requirements of this clause are met if, under the plan, a participating employer is not subject to unreasonable restrictions, fees, or penalties by reason of ceasing participation in, or otherwise transferring assets from, the plan. . Section 104(a) of such Act ( 29 U.S.C. 1024(a) ) is amended by adding at the end the following: In the case of any eligible small multiple employer plan, the Secretary may by regulation— prescribe simplified summary plan descriptions, annual reports, and pension benefit statements for purposes of section 102, 103, or 105, respectively, and waive the requirement under section 103(a)(3) to engage an independent qualified public accountant in cases where the Secretary determines it appropriate. For purposes of this paragraph, the term eligible small multiple employer plan means, with respect to any plan year, a qualified multiple employer plan (as defined in section 3(2)(C)) which, for the preceding plan year— did not have more than 2,500 participants, and did not have any employer sponsoring the plan which had more than 500 employees as participants. . The amendments made by this section shall apply to years beginning after December 31, 2013.
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Sec. 207
Modifications of rules relating to multiple employer defined contribution plans
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