A Multiple Employer Plan is set up by an entity--a principal plan sponsor--that bears all the responsibility(and therefore the liability) for running the retirement plan, even including the residual oversight duty to monitor a full-scope independent ERISA section 3(21) named fiduciary. The operations of the plan (i.e., administration) and the plan's assets (i.e., plan investment options) are transferred to an existing platform designed for the specific purpose of alleviating the burdens of fiduciary responsibility (and therefore fiduciary liability) from plan sponsors.
- What are the advantages of a Multiple Employer Plan?
If an adopting plan cosponsor decides to join the MEP, that employer will not bear any fiduciary responsibility (or liability) at all. A MEP could allow, conceivably, even thousands of plan sponsor employers to join it and none of them would actually be a fiduciary and - herefore would have no fiduciary responsibilities - or liabilities.
The Academy Benefit Partners staff can help answer any questions you might have on the plan or completing the plan conversion paperwork. Academy Benefit Partners can also set up a presentation for you to help explain our many unique features and benefits.
Once an employee becomes eligible to participate in the plan, they are automatically enrolled at the next payroll following the end of the month after they are eligible.
All employees that are not currently participating in your 401(k) plan will be enrolled at a 3% contribution rate. If a participant does not change their contribution rate after a full calendar year, then their contribution rate will be increased annually by 1% to a maximum rate of 6%.
Participants need to have reached the age of 21 and completed six months of service.
Yes. After employees meet the eligibility requirements, they have 90 days to opt out of the plan. If they opt out after any payroll deductions have been processed they will receive a check for their deductions less taxes. The participant will not have to pay the 10% early withdrawal penalty.
Yes. Our employer matching contribution is 100% of the employee’s first 1% deferred and 50% of employee’s next 5% percent deferred for a minimum total match of
3.5% of compensation. This eliminates testing and allows all participants to contribute annually up to the maximum IRS limits. The 2009 limit is $15,500.
- How do participants receive account statements?
The last four quarterly statements will be available on the participant website or by mail, if requested.
ABP will handle the conversion of participant information and transfer of assets from your current provider. All you have to do is sign the transfer agreements.
No. If you decide not to take advantage of The Payroll Company’s integrated services, ABP will work with your current payroll method. However, there may be a fee based on your specific requirements.
The plan’s independent fiduciary has signed an ERISA 402 letter stating that they are the fiduciary, as to their allocation of plan and participant assets. As ERISA compliant investment options, the plan sponsor and fiduciaries are not a party to participant losses.
Roth is a new retirement savings option. The Roth 401(k) option allows participants to make after-tax deferrals to their 401(k) plan. The funds in the Roth account grow tax-free and all withdrawals from a Roth savings account are tax-free. Unlike a Roth IRA, a Roth 401(k) account is not subject to income limits for contributions. Hence, regardless of your level of income you can contribute to the Roth 401(k).
Profit Sharing is a discretionary option for each employer each year. The employer can decide never to contribute to the profit sharing or can contribute different amounts each year.
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