83 FR 45321 - Strengthening Retirement Security in America

Executive Office of the President

Federal Register Volume 83, Issue 173 (September 6, 2018)

Page Range		45321-45323
FR Document		2018-19514

Federal Register, Volume 83 Issue 173 (Thursday, September 6, 2018)

[Federal Register Volume 83, Number 173 (Thursday, September 6, 2018)]
[Presidential Documents]
[Pages 45321-45323]
From the Federal Register Online  [www.thefederalregister.org]
[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.

                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.

                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.

(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

[[Page 45322]]

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).

                    (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.
                    (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.
                    (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.

[[Page 45323]]

                    (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

$Federal Register / Vol. 83, No. 173 / Thursday, September 6, 2018 / Presidential Documents 45321 Presidential Documents 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 busi- nesses 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. En- hancing workplace retirement plan coverage is critical to ensuring that Amer- ican 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 employ- ees 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. 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 forma- tion 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—poten- tially 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 daltland on DSKBBV9HB2PROD with PRES DOCS 3 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 VerDate Sep<11>2014 17:31 Sep 05, 2018 Jkt 244001 PO 00000 Frm 00001 Fmt 4790 Sfmt 4790 E:\FR\FM\06SEE0.SGM 06SEE0$

45322 Federal Register / Vol. 83, No. 173 / Thursday, September 6, 2018 / Presidential Documents

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).
(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.
(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 Treas-
ury, 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 explo-
ration 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, con-
sider proposing appropriate regulations or guidance, consistent with applica-
ble 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:
daltland on DSKBBV9HB2PROD with PRES DOCS 3

(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.

VerDate Sep<11>2014 17:31 Sep 05, 2018 Jkt 244001 PO 00000 Frm 00002 Fmt 4790 Sfmt 4790 E:\FR\FM\06SEE0.SGM 06SEE0

Document Created: 2018-09-05 23:55:45
Document Modified: 2018-09-05 23:55:45

Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Presidential Documents
FR Citation		83 FR 45321