It is time to consider a cost-effective retirement plan solution that significantly reduces your administrative burden?
Are you seeking to off-load growing fiduciary responsibilities and personal liabilities for you and your human resources staff?
Today’s Multiple Employer Plan (MEP allows small businesses to provide employees with a competitive defined contribution retirement plan option without taking on the traditional costs, fiduciary obligations and administrative burdens associated with 401(k) and similar qualified plans.
What is a MEP?
A Multiple Employer Plan (MEP) is a 401(a) plan sponsored by multiple, unrelated employers and is covered under Section 413(c) of the ax code. It can be either a defined benefit or defined contribution plans. It is considered a single plan under both the tax code and ERISA.
How does a MEP work?
The MEP works by “pooling” different employers together for cost aggregation and shielding from liability. It is set up by a multiple plan sponsor This organization holds the MEP master contract under which employers may adopt a retirement plan. A single Form 5500 is filed for the plan by the multiple plan sponsor.
How can I benefit as a business owner?
A MEP can help you as a business owner to reduce or eliminate burdensome fiduciary and administrative responsibilities, including overseeing compliance requirements. Instead, an independent plan sponsor oversees the servicing requirements for your participants and beneficiaries, relieving you and your human resources or benefits staff members from personal liability as it relates to the plan.
A MEP can be a beneficial solution for business owners seeking to:
- Reduce or mitigate your fiduciary responsibilities and exposure to liability
- Eliminate plan audits and Form 5500 filings
- Outsource your administrative compliance burden
- Free up time for you, your HR and administrative staff members
- Provide a competitive retirement plan benefit to employees
- Retain access to a broad range of plan investment options and features in a highly cost-effective manner