Presentation to the Georgetown Center for Retirement Initiatives December 10, 2015 Michael Kreps Principal, Groom Law Group

1. DOL’s Interpretive Bulletin 2015-02:
State Savings Programs That Sponsor
or Facilitate Plans Covered by ERISA
Presentation to the Georgetown Center for Retirement
Initiatives
December 10, 2015
Michael Kreps
Principal, Groom Law Group
mkreps@groom.com

2. Overview
 Effective Date: November 18, 2015
 What It Addresses
 ERISA Preemption and State Initiatives
 Types of Initiatives Covered
 State-Run MEPs
 State-Run Prototype Plans
 Marketplaces
 Initiatives Not Covered
 IRAs – Look to the Proposed Regulation
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3. Preemption
 Mandatory Employer Participation
Laws Would Be Preempted
 DOL’s View of Preemption
 “Does Not Appear to Undermine ERISA”
 State Does Not Create Requirements
“Relating To ERISA”
 State As Market Participant and Not As
Regulator
 Relation to “Governmental Plans”
Definition
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4. Prototype Plans
 Standardized set of plan documents
 Each employer adopts its own plan
 Plans facilitated by state
 State involvement depends on particular
arrangement
 Fiduciary responsibility can be
apportioned between state and
employer
 Employer retains some fiduciary
responsibility
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5. Multiple Employer Plans
 States Can Run Open MEPs
 Nexus is formed because of a State’s
unique representational interest in the
health and welfare of its citizens
 State can be almost entirely
responsible for management and
administration
 Employers retrain residual responsibility
for prudent selection/monitoring
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6. Marketplaces
 Connects employers with plans
 Usually meeting certain requirements
 Marketplace is not an ERISA plan
 State would not have fiduciary
responsibility for plans offered
 Flexibility in design
 Potential to provide employer education
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7. Contact Information
Michael Kreps
mkreps@groom.law
202-861-5415
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