Multiple Employer Plans - need the quick low down

[HarleyBabe]

Have a possiblility of obtaining a large client and creating a multiple employer plan. I have not worked on these before but have 22 years experience as a TPA. Hoping someone will email me or respond here with maybe an overview of why a multiple employer although it appears so that the audit requirments can be waived except for the plan sponsor and not the co-sponsors. Also, the advisor want to become the fiduciary who is bringing me in and I have read where TPA firms as well become one of the fiduciaries??? Little confused on that. What I really need as well and I"m sure you will want to email this is how you go about charging for one of these. These employers seem to want a closed MEPP plan.

Thank You

[John Feldt ERPA CPC QPA]

As for the charge, I think one stick of TNT ought to do it.

Derrin Watson has some Q&As right here at Benefitslink regarding MEPs. I am sure there are some that do not agree with all of his opinions. Upon takeover, we've come across several large open MEPs (unrelated employers) where just the one 5500 was filed, not filing a 5500 for each single employer.

First, here's a DOL opinion relative to just one MEP, 401(k) Advantage.

http://www.dol.gov/ebsa/regs/aos/ao2012-04a.html

Here are Derrin's Q&As:

http://benefitslink.com/modperl/qa.cgi?db=...loyer&n=315

http://benefitslink.com/modperl/qa.cgi?db=...loyer&n=316

http://benefitslink.com/modperl/qa.cgi?db=...loyer&n=317

http://benefitslink.com/modperl/qa.cgi?db=...loyer&n=318

http://benefitslink.com/modperl/qa.cgi?db=...loyer&n=319

http://benefitslink.com/modperl/qa.cgi?db=...loyer&n=320

http://benefitslink.com/modperl/qa.cgi?db=...loyer&n=321

http://benefitslink.com/modperl/qa.cgi?db=...loyer&n=322

http://benefitslink.com/modperl/qa.cgi?db=...loyer&n=323

http://benefitslink.com/modperl/qa.cgi?db=...loyer&n=324

http://benefitslink.com/modperl/qa.cgi?db=...loyer&n=325

http://benefitslink.com/modperl/qa.cgi?db=...loyer&n=326

http://benefitslink.com/modperl/qa.cgi?db=...loyer&n=327

http://benefitslink.com/modperl/qa.cgi?db=...loyer&n=328

http://benefitslink.com/modperl/qa.cgi?db=...loyer&n=329

[MoJo]

As for the charge, I think one stick of TNT ought to do it.

Derrin Watson has some Q&As right here at Benefitslink regarding MEPs. I am sure there are some that do not agree with all of his opinions. Upon takeover, we've come across several large open MEPs (unrelated employers) where just the one 5500 was filed, not filing a 5500 for each single employer.

First, here's a DOL opinion relative to just one MEP, 401(k) Advantage.

http://www.dol.gov/ebsa/regs/aos/ao2012-04a.html

Rumor has it (I heard about it from an attorney with Groom Law Group - usually pretty well informed) that the DOL is going to come out "yet this year" with additional guidance on MEPs - specifically 1) what lever of "relationship" is required for the MEP to not be an impermissable "Open" MEP (i.e. is some cross ownership sufficient even though a controlled group level of cross ownership doesn't exist, and what that level is (I've heard as low as 20%)); and 2) How do correct an impermissable Open MEP that hasn't filed separate Forms 5500 for years (I've heard a "safe harbor" correction method of going back 2 years and filing as separate plans maybe sufficient). Of course, there are IRS issues as well.

Anyone have any further information?