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prevailingmep

www.prevailingmep.com. What is a Multiple Employer Plan (MEP)?.

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prevailingmep

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  1. www.prevailingmep.com

  2. What is a Multiple Employer Plan (MEP)? 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.

  3. Employer Advantages in a MEP 401(k) Plan vs. Traditional 401(k) • 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. • Expenses: Traditional 401(k) plans can be costly in terms of fees and administrative costs. MEPs employers generally enjoy greater economies of scale. • 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.

  4. Traditional vs. MEP Employer Employer Employer Prevailing Asset Management Prevailing Asset Management Prevailing Asset Management

  5. Plan Structure Plan Sponsor:  Prevailing Asset Management Directed Trustee /Custodian of Assets: Financial Advisor: Online Administrator: ABG / Pentegra Corporation:

  6. Prevailing Multiple Employer Plan Features 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.

  7. Prevailing Multiple Employer Plan Features 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

  8. Prevailing Multiple Employer Plan Options 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

  9. Asset Management Partners

  10. Separately Managed Accounts • 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

  11. Patent Pending Investment Process Patent Pending Novus Managed Allocation Portfolios™

  12. Advantages Employee Benefits • Superior Investment Options • Lower Costs • Professional, Individual Investment Advice • Dedicated Service Team • User-Friendly Online Platform • Flexible Plan Features 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)

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