Post on 26-Mar-2015
transcript
www.prevailingmep.com
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 PerformsAnnualAudit?
WhoFilesForm5500?
Who Retains
Fiduciary Liability?
Traditional
Multiple Employer Plan
Employer
Employer
Employer
Prevailing Asset
Management
Prevailing Asset
Management
Prevailing Asset
Management
Traditional vs. MEPTraditional 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 plan’s 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 PartnersAsset 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