rights of the adopting employer owner

[AlbanyConsultant]

In a MEP, one of the adopting employers (AE) has said that they intend to leave the MEP soon - I don't know all of the details.  This was an informal conversation, no official formal notice has been given.

The owner of the AE followed-up by asking for some kind of trust report for the participants in that employer as of 12/31/25.  I presume the intent is to use that to bring to a new recordkeeper for pricing, conversion discussion, etc.  However, the trustee of the MEP has asked me to not provide this until we get a formal letter of the intent to separate from the MEP.

I don't think that's a tenable position.  Surely, the owner of the AE must have some rights to information?  They're not officially a "trustee" since they haven't signed a trust agreement (though maybe they should?), but since they do handle plan money...?

Obviously, it would be great if everyone would just play nice.  But in the absence of that, any ideas as to what I can lean on?  I'm perusing my basic plan document, but so far it's not that detailed.

Thanks.

UPDATE: I convinced the MEP sponsor to stop being difficult and I provided the data, so now this is just a theoretical issue.

[Peter Gulia]

Your story sets up a reminder:

An employer evaluating a pooled-employer plan or other multiple-employer plan might read carefully (or engage its lawyer to read) all documents governing the plan and its trust, and related arrangements, to evaluate a participating employer’s information rights and exit rights (or lack of exits).

Even if some might interpret ERISA’s title I to set up some implied information rights for a participating employer, an employer that uses a PEP or other MEP might find it impractical to enforce those implied rights. Further, asserting those rights could harm an employer’s personal interest in avoiding liability for its own fiduciary breaches.

This is not advice to anyone.

[Pam Shoup]

As a Pooled Plan Provider, we have our recordkeeping reports available on the web for the AE to pull down at any time. The AE also receives trust reports from the trust company for their part of the plan on a monthly basis (and can login at any time to see all their transaction data at the investment level).  I am not sure why they should have an issue with getting a trust report, unless the PPP only has the plan in an omni account and does not receive the trust reporting at the AE level.  In that case, they should at least be able to pull the report from the recordkeeper's website to use to bring to a new recordkeeper.

Not sure if the type of arrangement here but if the plan is transferring out of the MEP/PEP to another MEP/PEP or stand alone plan, I recommend that they have a Merger and Transfer Agreement executed in the process to formally document who is responsible for doing what.