MEP Plan

[Guest Pension250]

Can the plan sponsor of an MEP plan get paid on the assets in the plan, (to cover "marketing expenses" to market the MEP to its potential employers who might want to adopt the plan?)

I am working with an MEP plan where the plan sponsor is being offered a trail of ongoing revenue stream by the custodian. The justification is that the plan sponsor is going out to market the meetings with its member firms on a quarterly basis, and that the plan sponsor "drives to these meetings to help the advisor market the plan, and often buys lunch". So the custodian has the plan sponsor set up to get a percentage of assets annually paid out automatically (not from direct plan assets but like as some kind of finders fee from the custodian?)

We are also being told that "this happens all the time" and that this custodian has "tons of MEPs and this is very common"

I dont know, it is just hitting us strangely.....is this "normal"?

[Guest Sieve]

Is the M for "multi" or "multiple"? In either case, I don't see how marketing plan participation to other entities is an administrative expense of the plan. But then, I don't work with many of them.

[Guest Pension250]

"Multiple"