Regulatory and Legislative

Senate Proposal Would Allow Certain Plan Design Expenses from Plan Assets

Senators Jacky Rosen (D-NV) and Tim Scott (R-SC) have introduced S. 4086, the Increasing Small Business Retirement Choices Act. This bill would allow incidental plan expenses associated with implementing plan design features that benefit participants to be reimbursed from plan assets. Currently these discretionary settlor functions (such as adding an automatic enrollment feature) are not considered reasonable expenses of a plan and must be paid by the employer.