2 What is a Multiple Employer Plan (MEP)? 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.
3 Employer Advantages in a MEP 401(k) Plan vs. Traditional 401(k) Fiduciary Liability:While Employers retain full fiduciary liability in Traditional 401(k)s, MEP employersoutsource the role of plan sponsor as well as all associated fiduciary responsibilities.Expenses:Traditional 401(k) plans can be costly in terms of fees and administrative costs.MEPs employers generally enjoy greater economies of scale.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.
4 Who Retains Fiduciary Liability? Traditional vs. MEPWho PerformsAnnualAudit?WhoFilesForm5500?Who Retains Fiduciary Liability?TraditionalMultiple Employer PlanEmployerEmployerEmployerPrevailing Asset ManagementPrevailing Asset ManagementPrevailing Asset Management
5 Plan Structure Plan Sponsor: Prevailing Asset Management Directed Trustee /Custodian of Assets:Financial Advisor: Online Administrator: ABG / Pentegra Corporation:
6 Prevailing Multiple Employer Plan Features The Prevailing Multiple Employer Plan was designed to provide adopting parties a flexible, high quality and socially responsible platform. Some of the plan’s features are inherent while many others are customized at the pleasure of the adopting employer.
7 Prevailing Multiple Employer Plan Features Plan Level Features:Normal Default Retirement: Age 55Online Enrollment and Account Access: YesHardship Withdrawals: Available5500 Tax Filing / IRS Audit responsibility: Prevailing Asset Management, LLCStartup Fees: NoneAnnual Document Fees: NonePer Head Administrative Fees: NoneHard Dollar Fees to Participating Employers: None* (all fees are soft dollar from plan assets)Accepts Rollover Funds from:Section 401, 403, 457 PlansTraditional, SEP, SARSEP, and SIMPLE IRAs
8 Prevailing Multiple Employer Plan Options Employer Level Options:LoansRetirement AgeVestingParticipation RequirementsMatchingIn Service WithdrawalsEligible CompensationRoth StatusSafe Harbor StatusSegregation of Prevailing Wage / Davis Bacon / Employee / Employer deferrals by Schedule A
10 Separately Managed Accounts Institutional Class of Management vs. Retail ManagementSki Boat vs. Oil TankerLower CostsFull Transparency – No Hidden FeesAccess to Investment Managers via Quarterly Conference Calls
11 Patent Pending Investment Process Patent Pending Novus Managed Allocation Portfolios™
12 Advantages Employee Benefits Employer Benefits Superior Investment OptionsLower CostsProfessional, Individual Investment AdviceDedicated Service TeamUser-Friendly Online PlatformFlexible Plan FeaturesEmployer BenefitsFiduciary Liability is removedEconomies of Scale: lower costsEliminates form 5500 filingRemoves audit responsibilitySignificantly Decreased Employer BurdenFully Compliant with DOL 408(b)(2)(New Disclosure Rules Effective 7/1/2012)