Tag Archives: Multiple Employer Plans

Employee Benefits: Employers take heed

In recent years, employers seeking to reduce costs, eliminate plan audits and simplify administration have been encouraged by advisors to utilize what are called Multiple Employer Plans or “MEPs”. In a MEP, employers are able to commingle assets for investments and consolidate administration. MEPs typically file a single Form 5500 thus reducing the expenses related to such filing and the elimination of individual plan audits where they might otherwise be needed.

MEPs have existed for some time. Typically, they have been “closed” MEPs in that there was some nexus between the employers using the MEP. The classic examples are 401(k) MEPs sponsored by Professional Employer Organizations (PEOs), and MEPs sponsored by groups or associations such as chambers of commerce and professional associations for their members. 

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