SEC Divisions of Investment Management and Corporation Finance Issue Staff Guidance Supporting Retirement Plans for Small Businesses

The SEC's investment and corporate finance divisions have issued staff guidance clarifying how federal securities laws apply to pooled employer retirement plans (PEPs), easing regulatory pathways for small businesses to offer these plans [1]. The guidance, issued by the Divisions of Investment Management and Corporation Finance, addresses the application of securities laws to PEPs, which were created by the 2019 SECURE Act [1]. PEPs allow multiple unrelated small businesses to join a single retirement plan, reducing costs and administrative burdens for individual employers [1]. The Division of Investment Management stated staff will not object if PEPs use existing exemptions available to tax-qualified ERISA retirement plans [1]. Separately, the Division of Corporation Finance published guidance allowing PEPs to use a Form S-8 registration statement if employers choose to offer securities as part of the plans [1]. "Commission staff has made it easier for Main Street employees to invest their retirement savings on Wall Street," said SEC Commissioner Mark T. Uyeda [1]. The coordinated actions are intended to assist PEP sponsors and providers in using these pooled vehicles, aligning with the SECURE Act's goal of expanding retirement savings access [1].