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