MEPs
•Multiple employer plan (MEP): a retirement plan covering employers that typically have a common interest, but are
notcommonly owned
•Primary sponsor is the “lead” plan and generally the plan administrator and fiduciary
•Subsequent employers become “adopting employers” when they join the MEP
•Can be defined contribution (DC) or defined benefit (DB) plans
Single Employer Plan vs. Multiple Employer Plan (MEP)
•Fiduciary liability
•Trustee duties
•Administrative costs
•Plan audits
•Plan design
•Education/enrollment
Multiple Employer Plan (MEP)
•Asset pooling
•Potential of reduced administrative costs
•Fiduciary liability relief
•Relief from administrative tasks at adopter level
•No individual 5500 or plan audit
•Customized plan design at adopter level
•Full web access at adopting employer level
Multiple Employer Plans
MEPs are really all about leverage. You’re able to generate a number of advantages, including:
ADVANTAGES
•Economies of scale pricing
•Plan design flexibility
•Auto-enrollment
•Continuity of earned benefit credit between adopters
•Portability/tax advantages
•Administrative support
•One 5500 filing and single audit
•Client or member retention
If you would like a no obligation, second opinion into your 401k plan to see if your plan measures up give us a call at 630-799-8350 or email us at info@crosspointwealth.com. We look forward to the opportunity to show where there may be inefficiencies and earn your business.
P.S. You can also schedule a call with us here.
