considering meps and mets - brian nicholson
TRANSCRIPT
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
How We Can Help
Servicing Considerations
Pro’s and Con’s
How They Compare
The MEP & MET
Agenda
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
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
Open MEPs: MEPs whose participating employers cannot demonstrate a sufficient commonality (could include virtually any employer).
Multiple Employer Plans
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
Closed MEP Open MEP MET
How They Compare
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
• 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
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
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….
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?
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?
How BPAS Can Help
Payr
oll I
nteg
ratio
nExperience
Ptp Advice
Tech
nolo
gy
Fiduciary Services
Features & Support
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
BPAS PARTNER CONFERENCE 2016
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