Details of Public Law 117-328, section 106 , Multiple Employer 403(b) Plans

The provision amends IRC section 403 to allow 403(b) plans to participate in multiple employer plans (MEPs). A 403(b) MEP would not be treated as failing merely because one or more participating employers fail to take actions required for 403(b) plans if the plan otherwise satisfies rules similar to those provided under IRC section 413, regarding employer failures.

The provision also amends the Employee Retirement Income Security Act of 1974 (ERISA) to add 403(b) MEP plans.

Under RTC sections 17501 and 24601, California automatically conforms to the federal changes made to Part I of Subchapter D of Chapter 1 of Subtitle A of the Internal Revenue Code, which includes IRC section 403. As a result, the federal relief for multiple employer plans automatically applies under California law.

ERISA Preemption

Additionally, federal ERISA sections specifically preempt state laws relating to certain employee benefit plans in California.