NEW BENEFIT: 401(k) Multiple Employer Plan (MEP)

Did you know AFA members can now participate in a new benefit that employees really value? The AFA Member Savings Program has launched a 401(k) Multiple Employer Plan (MEP) for our association members through our Member Savings Program and Transamerica. 

A MEP is a group of 401(k) plans which are combined into one plan. The MEP option came into being in late 2019 through new national legislation which allows smaller companies to join together to obtain buying power and economies of scale resulting in reduced investment fees, reduced billable fees, and a reduction in staff workload. Also, there is reduced fiduciary liability to you as the employer and Plan Sponsor. As the collective assets under management grow; the management fees will be reduced even further under the MEP.
 
The MEP will allow companies without a current retirement plan to start one at a lower cost and with less work and also allow companies with existing 401K plans to join in our group plan to reduce their costs.

As you know, retirement plans are also one of the key tools to employee recruitment and retention. Check out the new 401k / MEP Plan and see if it makes sense for you, your company and your employees.
 
One misconception many companies have is that you need to provide a matching contribution. While there are many advantages to doing this, including employee recruitment and retention, you can start a plan with only employee contributions. 
 
If you would like to learn more about providing this benefit to your employees please reach out to our Transamerica National Representative, Mark Cywin at 201-618-9581 and tell him you are with the AFA.