Multiple Employer Plans

Multiple Employer Plans

Multiple Employer Plans (MEPs) are growing in popularity as well as well as scrutiny from regulators. Practitioner Mike Montgomery, a thought leader in this area, reviews and highlights research and resources on MEPs, including how to set them up and run them and what types of companies might benefit the most from these types of arrangements.

Plan Sponsors Wary of State-Run MEPs

Based on focus groups commissioned by a number of top DC providers and conducted with plan sponsors by EACH Enterprises, there seems to be considerable concern about state-run retirement plans. Though the California model, which allows companies to choose from private and public options, seems to be getting the most support, plan sponsors are concerned about state-run plans for several reasons.   Read More

ERISA Attorney Humphrey Disputes DOL’s MEWA/MEP Comparison

In Advisory Opinion 2012-04A, the DOL fundamentally changed the prevailing wisdom on “open” MEPs, indicating that these arrangements should be considered to be individual plans rather than a single plan having multiple adopters. In a new article, Charles G. Humphrey makes the case that the watershed DOL opinion relies too heavily on a questionable comparison with Multiple Employer Welfare Arrangements (MEWAs).   Read More

Trends in Outsourcing Have Led to Open MEPs – What’s Next?

Mike Montgomery, an advisor and industry thought leader on MEPs (and NAPA Net’s MEP Conductor), reviews the trends in outsourcing that led to today’s open MEPs, and projects where the market might be headed in light of the 2012 DOL restrictions and the advent of 3(16) administrative fiduciaries. Plan sponsors have outsourced an increasing number of duties and liabilities as they try to back away from managing their 401(k) plans — but given the recent enactment of state-run MEPs, will this trend eventually lead to the nationalization of small-business retirement plans?   Read More

Is There a Silver Lining for State-Run MEPs?

Are state-run MEPs a potential boon for plan advisors? Though there is concern about the government trying to nationalize small-business retirement plans, would state-run plans actually be an opportunity for advisors? Jamie Kalamarides, SVP at Prudential, suggests in an interview that there could be a silver lining in these state initiatives. But small-business DC plans are sold — primarily by advisors and payroll companies — so it is doubtful that a “build it and they will come” mentality will be effective unless state-run retirement plans are made mandatory, which is harder to enact and raises a whole host of other issues.   Read More

Calif. Creates State-Run Private Retirement Plan

California Gov. Jerry Brown (D) signed legislation Sept. 28 that will create the nation’s first state-administered retirement savings program for private-sector workers, over the objection of critics who said it creates a new liability for taxpayers. The bill will establish the California Secure Choice Retirement Savings Program for more than 6 million lower-income, private-sector workers whose employers do not offer retirement plans.   Read More