Prudential Financial plans to launch a new solution the Multiple Small Employer Plan (MSEP), to meet the retirement savings needs of the workers by enabling small employers to join together to offer a single retirement program.

According to Prudential, leveraging Multiple Small Employer Plans to close the retirement coverage gap, an array of enhancements were made to multiple employer plan (MEP), which may serve as foundation for MSEP.

In addition, the MEPs enable groups of employers to join a single 401(k) plan sponsored by an affinity group or similar organization and it may also help workers build and achieve a secure retirement through inclusion of automatic enrollment and contribution escalation, investment defaults, and investor education.

The company said that MSEPs would increase small employers’ purchasing power, reduce administrative burden, and provide a step on path toward implementing an efficient plan.

Jamie Kalamarides, senior vice president of Retirement Solutions at Prudential, said: “MSEPs would bring additional choice to the small business end of the market, allowing small businesses to choose the option that best meets their objectives and the needs of their workforce.

“US Representative Ron Kind (D-WI) recently introduced the SAVE Act, an important step in expanding access to workplace-based retirement plans. The inclusion of the Automatic IRA and the Multiple Small Employer Plan will help extend the benefits of the Pension Protection Act of 2006 to all working Americans, regardless of the size of their employer.”