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What is a Multiple Employer Plan (MEP)?

…plan service providers. The following are some of the factors you should consider when comparing multiple employer plans: Are all service providers adequately experienced in fully serving MEPs? Multiple employer plans are unique and require specific knowledge and expertise. Ask how long the provider has…

What 401(k) RESA Legislation Means for MEPs and PEPs

…A vote could even take place before the end of March. Assume RESA passes: what would this mean for multiple employer plans (MEPs) and PEPs? How might advisors and service providers respond? What follows is a summary of the Senate Bill and its possible implications…

How Does A Cash Balance Plan Work?

A cash balance plan is a hybrid plan in the sense that the plan combines features of both defined contribution and defined benefit plans. Similar to most defined benefit plans, there are no participant contributions. The employer determines benefit levels and bears responsibility for providing…

401(k) Plan Design and Automatic Features

…wages are contributed to the retirement plan on the employee’s behalf. Most commonly, this feature is in 401(k) plans, but it can also be included in the following types of plans that permit employees to make elective contributions: 403(b) plans; 457(b) plans maintained by governmental…

Credit Unions: Make Sure You Know Your Fiduciary

…increasingly have been turning to Multiple Employer Plans (MEPs) to alleviate these concerns. A MEP relieves the employer of full fiduciary responsibility – an area where a given credit union may not have the necessary expertise; shifts administrative duties to the provider; and benefits both…

What is a Safe Harbor Plan?

…– employers currently sponsoring 401(k) or profit sharing plans can generally convert their existing plans to safe harbor 401(k) Plans. Profit sharing plans without 401(k) provisions can be amended mid-year subject to the 3 month rule requirement. The conversion of 401(k) plans is not effective…

Cross Tested Plans

…ARE THE DIFFERENT TYPES OF PLAN DESIGNS FOR CROSS TESTED PLANS? Typical Cross Tested plan designs include New Comparability Plans and Age-Weighted plans. With both types of plans, if non-discrimination requirements are met, a larger share of the employer’s contribution may be made on behalf…

The Uncertain Future of the PBGC

…workers and retirees in 22,000 pension plans, while its multiemployer program protects 10 million workers and retirees in 1,400 pension plans. The cost to workers has historically been low: The per-participant flat premium rate for plan years beginning in 2017 is $69 for single-employer plans

Which Types of 403(b) Plans Are Subject to ERISA?

403(b) plans are commonly used by tax-exempt organizations to provide retirement benefits for their employees. Generally, plans that are established or maintained by private tax-exempt organizations are subject to ERISA (governmental and non-electing church plans are always exempt). However, there have always been questions about…

The SECURE Act Has Finally Passed – What Does It Mean? (Part One)

…Act which we question. The legislation also provides for portability of lifetime income options by permitting participants in qualified defined contribution plans, section 403(b) plans, or governmental section 457(b) plans to make a direct trustee-to-trustee transfer of lifetime income investments to another employer-sponsored retirement plan…