What are the unique benefits of a Multiple Employer Plan (MEP)?
1. 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.
2. MEPs delivery Fiduciary Relief and professional oversight
- MEPs offer the ability to outsource fiduciary responsibility and provide an elevated level of governance and attention to detail
- This type of governance and oversight are normally difficult to obtain without costly assistance if you have a stand-alone plan.
- By participating in a MEP, you transfer virtually all fiduciary responsibility for the management of your retirement plan.
- Your name literally comes off the legal documents as Named Fiduciary, Trustee, and Plan administrator.
- This eliminates the primary fiduciary responsibilities that come with sponsoring a retirement program.
3. MEPs streamline plan administration
- Under a MEP, administrative responsibilities for ERISA 3(16) administrative duties are outsourced
- This shifts the burden from plan administrative responsibilities to someone else.
- MEPs streamline plan operations
- That means less time spent managing your retirement plan, and more time focusing on your practice.
4. MEPs offer professional investment management
- Investment management is outsourced through a 3(38) relationship to a professional firm 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, along with professional investment oversight.