I am pleased to announce the new 401K MEP program available to you through the Member Savings Program. As you may already know; we have 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.
If You Have a Current Plan:
In order to see if the 401(k) MEP is a good option for your company, our MEP service provider, Transamerica will perform an evaluation of your current plan and compare it to our new MEP offering.
In order to assess your plan, Transamerica would need the following information which should all be available through your current provider:
· 408(b)(2) Fee Disclosure - This document is provided by your record keeper and will indicate all fees you are paying for your plan.
· Current asset statement - This will allow us to review the investment fees and performance.
· TPA Invoices - Not all plans utilize a TPA, but if yours does this will be useful in evaluating the services and fees you are being charged.
If You Do Not Have a Plan:
The MEP will allow you as a company without a current retirement plan to start on at a lower cost and with less work. One misconception that 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 deferral contributions.
If after the evaluation you see cost and value advantages to the MEP plan; Transamerica can assist you with the transition to the Group MEP. If you decide to stay with your current plan, you will have at least performed an important fiduciary duty of reviewing the plan to ensure your participants have the best plan possible.
To learn more about this cost effective option, please reach out to our Transamerica Representative Mark Cywin at 201-618-9581 or Mark.Cywin@Transamerica.com.
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