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Posted

We have two MEPs that are merging/terminating. I use both words because that is my question. The MEP sponsor is merging the plans into a larger MEP at another record keeper. There are a few adopting employers who are going to merge into another MEP and one or two who are going to spin off to their own plans. The prior TPA that we inherited this MEP mess from set up each adopting employer with their own plan document and not a regular MEP document with each AE signing a Joinder Agreement.  It has been my understanding that an adopting employer has limited choices when leaving a MEP: spin of and continue the plan, spin off and terminate the plan, or merge into another plan. There are the option because you cannot terminate the MEP. The MEP has a few "orphans"  (i.e. inactive employer) are not transferring to the new MEP. Can the MEP be terminated just like a regular plan termination or do the "orphans" have to be spun off and terminated?  

  • 3 weeks later...
Posted

This board is for "Multiemployer" plans, not "Multiple Employer" plans.  You might get better responses in the Retirement General, or one of the Defined Contribution Plan oriented boards - I am moving it to the 401(k) Board.

The material provided and the opinions expressed in this post are for general informational purposes only and should not be used or relied upon as the basis for any action or inaction. You should obtain appropriate tax, legal, or other professional advice.

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