MULTIPLE EMPLOYER PLAN (401(K))

This guide was developed to help both small and large businesses understand what a multiple employer plan (MEP) is, the benefits of adopting an MEP, and the potential cost savings that can be realized by your business—when compared to operating a single employer plan on your own.

Why retirement planning is important

Employees value working for an employer with a retirement plan in place. In fact, 50% of workers said they’d prefer a job with excellent retirement benefits with minimum salary requirements vs. a higher salary with poor retirement benefits.

This statistic reveals an important point: employees place a high value on retirement benefits, and consider a retirement plan to be a vital part of their overall compensation package.

What is a multiple employer plan?

A multiple employer plan, also referred to as an MEP, is retirement planing for businesses that typically have a common interest, but are not commonly owned or affiliated. These businesses are referred to as adopting employers when they elect to join the MEP. These plans can be defined contribution (DC) or defined benefit (DB) plans.

What is a multiple employer plan sponsor?

A multiple employer plan sponsor is the organization that maintains the MEP and master contract under which adopting employers may adopt a retirement plan. An example of organizations that may sponsor an MEP can be a professional employer organization (PEO), or a professional association.

What are the benefits of adopting an MEP?

There are many benefits for your business to adopt a retirement plan through an MEP including:

• Potential cost savings compared to operating a single employer plan on your own
• Fiduciary support
• Plan design flexibility
• Access to more investment choices
• Strong participant education support*
• Business tax deductions*
• Employee retention and recruitment*
• And many more

What are the potential cost savings of adopting an MEP?

One of the most compelling benefits your business may realize by adopting an MEP is the cost savings. Let’s take a look at the savings when comparing the hard costs your business may have when operating a single employer plan on your own outside of an MEP.

Most businesses find that adopting an MEP saves them not just money but also time.

Executive Class Underwriting

Up to a $3 Million Face Amount and no Medical Exams for Certain Cash Value Life Insurance Products.

Higher Limit

Up to $3 million face amount for your business’ executive benefit planning needs.

Hassle-Free

You just complete a brief telephone interview. No bodily fluids, no needles, no medical exams.

Exclusive

Only offered to highly compensated executives using a Life Insurance Retirement Plan (LIRP) design.