Retirement 401(k)

What is a Multiple Employer Aggregation Program?

A Multiple Employer Aggregation Program (MEAP) is a qualified retirement plan adopted by multiple employers through their association with the sponsoring organization, which acts as the lead sponsor. The MEAP is designed to gather the plan’s important administrative, record keeping and fiduciary services to be overseen by a third party, which allows the plan sponsors who participate to outsource many responsibilities that come with running a retirement plan, and often, helps reduce costs.

Why consider joining a MEAP?

It’s Easy

The MEAP can become their 401(k) department, performing most of the administrative tasks for their plan, including handling their regular contribution files. 

Protects YOU

By joining a MEAP, employers can avoid much of the compliance concerns that come with offering their own plan. while their role as plan fiduciary still exists, many specific tasks transition to the MEAP. The employer’s ongoing role is to oversee the various parties dedicated to the plan to ensure it operates as expected. 

cost competitive

The MEAP delivers more value and services —potentially at similar or less cost than businesses are already paying. And, as plans grow, they’re reviewed regularly for price reductions.

Reducing work, responsibilities, and liabilities

There’s more to the fiduciary role than good intentions, or even good returns. It’s essential to ensure key responsibilities are met and to adopt a prudent process for selecting and monitory investment options. A MEAP may offer the fiduciary protection many plan sponsors need.

Your Responsibilities BEFORE Joining A Meap

Design plan document, maintain qualified status and assign and oversee all other plan fiduciaries.

Appoint and monitor plan investment fiduciary duties for all other plan fiduciaries, produce, maintain, and follow an Investment Policy Statement (IPS), select and monitor an investment platform meeting ERISA “prudent person” standards, conduct and document quarterly investment committee meetings, review and document investment returns, fees, expenses and comparisons to peer group, and monitor the status of all investment options and remove or replace them as appropriate.

Deposit contributions and submit payroll files for upload on a timely basis, complete annual ownership and census verification for testing purposes, oversee annual census reconciliation with Third Party Administrator (TPA), oversee and manage the annual Form 5500 filing process in conjunction with a TPA, determine participant eligibility, conduct enrolment and educational meetings, address specific participant requests in compliance with the 404(a)(5) participant fee disclosure regulation, administer participant loans in compliance with statutory requirements, verify termination dates and vesting, and send out participant termination packets, administer distribution and rollover requests for terminated employees, administer hardship withdrawals in compliance with the hardship rules, included in provisions of the Pension Protection Act (PPA) of 2006, review and validate compliance testing, send out required year-end notices to participants (that is, Safe Harbor, summary annual report (SAR) and so forth), and send out enrolment packets, including summary plan description (SPD), 404(c) compliance information, Qualified Default Investment Alternative (QDIA) and annual participant fee disclosure 404(a)(5).

Your Responsibilities AFTER Joining a Meap

Sign initial paperwork agreement and select customized plan design options to meet your business needs

Deposit contributions and submit payroll files for upload on a timely basis, periodically monitor the Program and any third parties managing administrative and fiduciary tasks to ensure plan provisions are being carefully administered, and complete your annual ownership and census verification for testing purposes.