IS A MEP RIGHT FOR YOUR BUSINESS?
A well-designed 401(k) plan can help attract, retain and reward talented employees. Many small businesses have a strong desire to offer a 401(k) or other retirement plan but face considerable hurdles in terms of cost, expertise and dedicating the necessary time to properly run the plan. Multiple Employer Plans (“MEPs”)eliminate these hurdles.
WHY JOIN A MEP?
A MEP is distinct type of 401(k) retirement plan in which employers join together to pool their purchasing power within a single plan. MEPs make it easy and cost-effective for any size organization to offer a high-quality institutional level retirement plan.
MEPs bring together a comprehensive array of plan services, fiduciary support and investment platform to offer you and your employees a seamless retirement plan solution. A MEP is a powerful tool to help you help your employees achieve successful retirement outcomes.
MEPs OFFER ECONOMIES OF SCALE
By collectively participating, employers are able to leverage their combined purchasing power to access institutional quality features in a more cost-effective manner than single employer plans can access on their own.
MEPs DELIVER FIDUCIARY RELIEF & PROFESSIONAL OVERSIGHT
MEPs offer the ability to outsource fiduciary responsibility and provide an elevated level of governance and attention to detail—governance and oversight that are difficult to obtain without costly assistance. By participating in a MEP, you transfer virtually all fiduciary responsibility for the management of your retirement program—your name comes off the legal documents as Named Fiduciary, Trustee and Plan Administrator—eliminating the primary fiduciary responsibilities that come with sponsoring a retirement program.
MEPs STREAMLINE PLAN ADMINISTRATION
Under a MEP, administrative responsibilities for ERISA 3(16) administrative duties are outsourced—shifting the burden for plan administrative responsibilities. What’s more, a MEP uses a single plan document, which means that only a single restatement and letter of determination are needed for adopting employers. MEPs also streamline plan operations, as disclosures, notices and education materials are nearly identical for adopting employers. That translates into less time spent managing your retirement program, with more time to focus on your business.
MEPs OFFER PROFESSIONAL INVESTMENT MANAGEMENT
Under a MEP, investment management is outsourced to a professional who chooses and monitors plan investments in accordance with a written investment policy statement. The pooling of plan assets affords access to low cost, institutional-quality investment fund share classes, and the benefit of professional investment oversight.
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