One of the biggest risks inherent in MEPs/PEPs is coordinating all of the many moving pieces. Here’s why people might be wrong to think they know enough about assembling a 401k MEP/PEP and regulatory compliance only heightens the potential liability.
Tag "MEP"
Do you know the answers to the most important MEP/PEP questions – or do you only think you know the answers to the most important MEP/PEP questions?
Unless state-sponsored efforts can defy the stultifying reality of any political process, they are unlikely to pivot fast enough to overcome the fast-paced offerings coming from these private sector offerings.
He also reveals the greatest misconception regarding MEPs, what the SECURE Act really did, and when we might begin to see the mass media start paying attention.
“As far as adopting employers, I would recommend an ERISA attorney because an MEP isn’t the right fit and fiduciary solution for every plan sponsor.”
It’s important to remember that the 401k MEP is just a vehicle. Whether they truly meet the objective of employees saving more for retirement and doing so effectively and efficiently comes down to execution.
It appears all but certain the floodgates will soon open wide, unleashing a torrent of trade association sponsored 401k MEPs. If you’re looking for the trigger that will open those floodgates, here’s what you should be paying attention to.
“401k Multiple Employer Plans (MEPs) are a solution for the small to mid-sized employer market that will lead to the expansion of retirement plan coverage for America’s workers.”
MEPs have the potential to do what state-sponsored plans may not be able to offer – protection under ERISA. That’s in the employees’ best interests. If many embrace this concept, September 30, 2019 may indeed signal the dawn of a new day in retirement saving. Still, due diligence remains an imperative.
FiduciaryNews.com Trending Topics for ERISA Plan Sponsors: Week Ending 8/2/19
MEP rising, fiduciary pushme-pullya, and fee gotcha!