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Association Retirement Plans/MEAP

Reducing work, responsibilities, and liabilities

There’s more to the fiduciary role than good intentions, or even good returns. It’s essential to ensure key responsibilities are met and to adopt a prudent process for selecting and monitoring investment options. A MEAP may offer the fiduciary protection many plan sponsors need.

There’s more to the fiduciary role than good intentions, or even good returns. It’s essential to ensure key responsibilities are met and to adopt a prudent process for selecting and monitoring investment options. A MEAP may offer the fiduciary protection many plan sponsors need.


Your responsibilities BEFORE joining a MEAP

Plan sponsor duties 

  • Design plan document

  • Maintain qualified status

  • Assign and oversee all other plan fiduciaries

                   Plan investment fiduciary duties

  • Produce, maintain and follow an Investment Policy Statement (IPS)

  • Select and monitor an investment platform meeting ERISA “prudent person” standards

  • Review and document investment returns, fees, expenses and comparisons to peer group

                     Operational plan administrator duties

  • Deposit contributions and submit payroll files for upload on a timely basis

  • Complete annual ownership and census verification for testing purposes

  • Oversee annual census reconciliation with Third Party Administrator (TPA)

  • Oversee and manage the annual Form 5500 filing process in conjunction with a TPA

  • Determine participant eligibility

  • Conduct enrollment and educational meetings

  • Administer participant loans 

  • Verify termination dates and vesting, and send out participant termination packets

  • Administer distribution and rollover requests for terminated employees

  • Administer hardship withdrawals 

  • Review and validate compliance testing

  • Send out enrollment packets, including summary plan description 

  • Investment Alternative (QDIA) and annual participant fee disclosure

     

Your responsibilities AFTER joining a MEAP

Initial choices

  • Sign initial paperwork agreement

  • Select customized plan design options to meet your business needs Ongoing duties 

  • Deposit contributions and submit payroll files for upload on a timely basis 

  • Periodically monitor the Program and any third parties managing administrative and fiduciary tasks to ensure plan provisions are being carefully administered 

  • Complete your annual ownership and census verification for testing purposes

Ongoing duties

  • Deposit contributions and submit payroll files for upload on a timely basis

  •  Periodically monitor the Program and any third parties managing administrative and fiduciary tasks to ensure plan provisions are being carefully administered

  • Complete your annual ownership and census verification for testing purposes

Three questions to consider:

Three questions to consider:

1.      How much responsibility for “managing your own plan” do you really want?

2.      How much of the plan liability do you want to keep?

3.      Does it make sense to outsource, so you can focus more on your business and less on your 401(k)?

A MEAP is designed to free up your time and preserve important flexibility, so you can focus on running your business — and it all starts with the right plan design

A tailored plan design that represents your goals and your people

The right plan design is an essential part of meeting retirement goals for your business and your employees. This program allows you to customize a plan to help you do just that.

Eligibility

Standard eligibility is age 21 and one year of service, but you can work with the program's TPA to select an option that works best for your business. 

Vesting

Vesting refers to the portion of your employer match or profit-sharing account participants are entitled to keep upon termination.  You can choose from several options for your plan.

Plan Design

Since the right design is so important, the program's TPA will work with you to determine the plan design that will help you reach your business and retirement goals.