6/18/99: The Department of Labor has published Interpretative Bulletin 99-1 to encourage employers to use payroll deduction programs for employees' individual retirement accounts. Excerpt:
[A]s part of the Department's ongoing efforts to encourage retirement savings, the Department is hereby summarizing and restating its views on employer involvement in providing voluntary payroll deduction systems for contributions to IRAs. This bulletin is intended to supplement 29 CFR 2510.3-2(d) by summarizing and restating the interpretive views of the Department, as expressed in advisory opinions since promulgation of the regulation, on various aspects of an employer's involvement in IRA programs. This interpretive bulletin clarifies the circumstances under which an employer may facilitate employees' voluntary contributions to IRAs by providing an IRA payroll deduction program without thereby inadvertently establishing or maintaining an employee benefit pension plan within the scope of section 3(2) of ERISA.
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