2012 Department of Labor Guidance on “open MEPs” answered some long-standing questions but created many more. Open MEPs are a series of separate plans under ERISA, not a single ERISA plan. However, “closed” MEPs can still be treated as single plans under ERISA. The so-called “one bad apple rule” creates risks to participating employers, but MEPs have many potential administrative and cost advantages over single-employer plans.
The President, Congress, and the Department of Labor have all recently weighed in on the potential benefits of, and the need for changes to MEPs, and Congress has proposed the creation of Pooled Employer Plans (PEPs) as an alternative. This seminar will review the current and proposed MEP and PEP landscape.
- Common multiple employer plan situations
- Design strategies
- Qualification rules
- PEO-specific rules
- DOL MEP Guidance – Past and proposed
- ERISA status
- 5500 Filing
- Fiduciary responsibility
- Correcting errors
- Potential legislative and regulatory changes
There are no prerequisites or other advanced preparation for this program. However, the speaker will assume that attendees understand the operation of 401(k) plans in general and have one year of experience. The speaker will not assume prior experience with multiple employer plans.
Instructional Delivery Method
Group – Internet-Based
NASBA Field of Study: Taxes
Speaker: David Schultz, J.D.
Objectives: After attending this Web seminar, an attendee should be able to:
- Identify appropriate situations for MEPs
- Determine service for eligibility and vesting
- Calculate compensation for various purposes
- Explain how to test the plan for coverage and nondiscrimination
- Assist in plan design
- Adapt to the administrative differences involving these plans
- Anticipate potential legislative and regulatory changes to the MEP rules
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