Presentation on theme: "Www.prevailingmep.com. A Multiple Employer Plan (MEP) is a single Qualified Retirement Plan housing multiple different "adopting employers" with common."— Presentation transcript:
A Multiple Employer Plan (MEP) is a single Qualified Retirement Plan housing multiple different "adopting employers" with common retirement savings objectives. This unique type of plan construct offers numerous advantages and administrative efficiencies when compared to a typical stand-alone plan sponsored by a single employer.
1. Fiduciary Liability: While Employers retain full fiduciary liability in Traditional 401(k)s, MEP employers outsource the role of plan sponsor as well as all associated fiduciary responsibilities. 2. Expenses: Traditional 401(k) plans can be costly in terms of fees and administrative costs. MEPs employers generally enjoy greater economies of scale. 3. Annual Filings: Traditional 401(k) plan sponsors must file IRS Form 5500 and may have to perform an expensive and cumbersome IRS audit while MEP employers are relieved of these responsibilities as well as the associated costs.
Who Performs Annual Audit? Who Files Form 5500? Who Retains Fiduciary Liability? Traditional Multiple Employer Plan Employer Prevailing Asset Management Traditional vs. MEP
Plan Sponsor: Prevailing Asset Management Directed Trustee /Custodian of Assets: Financial Advisor: Online Administrator: ABG / Pentegra Corporation: Plan Structure
The Prevailing Multiple Employer Plan was designed to provide adopting parties a flexible, high quality and socially responsible platform. Some of the plans features are inherent while many others are customized at the pleasure of the adopting employer.
Plan Level Features: Normal Default Retirement: Age 55 Online Enrollment and Account Access: Yes Hardship Withdrawals: Available 5500 Tax Filing / IRS Audit responsibility: Prevailing Asset Management, LLC Startup Fees: None Annual Document Fees: None Per Head Administrative Fees: None Hard Dollar Fees to Participating Employers: None * (all fees are soft dollar from plan assets) Accepts Rollover Funds from: Section 401, 403, 457 Plans Traditional, SEP, SARSEP, and SIMPLE IRAs
Employer Level Options: Loans Retirement Age Vesting Participation Requirements Matching In Service Withdrawals Eligible Compensation Roth Status Safe Harbor Status Segregation of Prevailing Wage / Davis Bacon / Employee / Employer deferrals by Schedule A
Asset Management Partners
Institutional Class of Management vs. Retail Management Ski Boat vs. Oil Tanker Lower Costs Full Transparency – No Hidden Fees Access to Investment Managers via Quarterly Conference Calls
Patent Pending Novus Managed Allocation Portfolios
Employer Benefits Fiduciary Liability is removed Economies of Scale: lower costs Eliminates form 5500 filing Removes audit responsibility Significantly Decreased Employer Burden Fully Compliant with DOL 408(b)(2) (New Disclosure Rules Effective 7/1/2012) Employee Benefits Superior Investment Options Lower Costs Professional, Individual Investment Advice Dedicated Service Team User-Friendly Online Platform Flexible Plan Features