Contributions made to an employee’s Trump Account will generally not be subject to federal pension plan regulations, the Department of Labor (DOL) said in a June 18 statement.
The DOL’s recent clarification concerns whether an employer’s contributions to an employee’s Trump Account are subject to Title I of the Employee Retirement Income Security Act (ERISA).
ERISA is a federal law that governs the standards for most private-sector retirement and benefit plans, including pension plans. Title I of ERISA institutes reporting, disclosure, funding, and other regulations.
In a June 17 technical release, DOL said section 3(2) of ERISA makes it clear that a plan will only be considered a pension plan under the section “if it provides retirement income to employees.”…