Considering MEPs and METs - Brian Nicholson
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Transcript of Considering MEPs and METs - Brian Nicholson
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B P A S P A R T N E R C O N F E R E N C E 2 0 1 6
Considering MEPs and METsBrian NicholsonSenior Sales Relationship Manager, BPAS Plan Administration & Recordkeeping Services
B P A S P A R T N E R C O N F E R E N C E 2 0 1 6
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How We Can Help
Servicing Considerations
Pro’s and Con’s
How They Compare
The MEP & MET
Agenda
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Multiple Employer Plans
A retirement plan adopted by two or more employers who
are unrelated (not members of a controlled group or affiliated service group). There are two types of MEPs……Closed and
Open.
MEPs
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Multiple Employer Plans
Considered one Plan under
ERISA, share one plan document, but have many participating employers.
Closed MEPs: MEPs whose participating employers share a nexus or common bond (not a control group), such as with an Association or Professional Employer Organization (“PEO”).
ParticipatingEmployers
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Open MEPs: MEPs whose participating employers cannot demonstrate a sufficient commonality (could include virtually any employer).
Multiple Employer Plans
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METs - Assets of separate retirement plans are combined into a single Trust. Plans in an MET remain separate and distinct, with independent plan documents.
Single Group Trust
ParticipatingEmployers
Multiple Employer Trusts
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Closed MEP Open MEP MET
How They Compare
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One filing for the MEP
Single Plan Document
Relief from selecting and monitoring
investments
When buying investments & other Plan
Services
Testing required for
each ER
Individual filing for each ER? One filing for the MEP?
Single Plan Document
Relief from selecting and monitoring
investments
When buying investments & other Plan
Services
Testing required for
each ER
Individual filings for
each ER; one for the MET
Each ER has separate
document
Relief from selecting and monitoring
investments
When buying investments
Closed MEP
Open MEP
MET
DocumentTesting
Testing required for
each ER
Reporting & Disclosure
FiduciaryProtection Cost Savings
Yep
Nope
Nope
Nexus Required?
How They Compare
Same across all ER’s
Same across all ER’s
May be different from
ER to ER
Cost Structure
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• Lower costs• Reduction in Fiduciary responsibility• Increased level of Governance• Improves ER access to retirement plans
Pro’s
• Can be complex• Limited flexibility w/investment selection (for
each ER) • Limited flexibility in Plan Design (MEP’S)• “One bad apple”?? (MEP’s)
Con’s
Pro’s and Con’s
Pro’s
Con’s
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Servicing Considerations
• Discretionary• Non-DiscretionaryInvestment Advisory
• Education • Advice• Outsource??
Participant Services
• Monitoring of Service ProvidersOversight
What Roles Will You Play?
Investment Advisory
Participant Services
Oversight
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Servicing Considerations
• Meetings with Sponsors/Lead ER In Person?• Meetings via webinar or other technology?For Investment Advisory….
• “Boots on the ground”?• Technology based?• Both?
For Participant Education….
• Will this be provided?• By you, or outsourced?For Participant Advice….
What’s Your Service Model?
For Investment Advisory….
For Participant Education….
For Participant Advice….
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Servicing Considerations
• Payroll Companies• PEO’s• Associations
Partnerships or Alliances….
• You? • The Lead ER (PEO, Association, etc.)?• A Partner (e.g. payroll provider)?
Who’s Marketing?
• Will depend on Plan type • Plan size and participantsWhat’s the Target Market?
What’s The Marketing Strategy?
Partnerships or Alliances….
Who’s Marketing?
What’s the Target Market?
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Servicing Considerations
• Depends on your service model• Internal Resources…and time• Your Partners
How much can you support?
What’s Your “Bandwidth”?
Other things to Consider?
How much can you support?
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How BPAS Can Help
Payr
oll I
nteg
ratio
nExperience
Ptp Advice
Tech
nolo
gy
Fiduciary Services
Features & Support
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