Multiple Employer 401(k) Plan
What is an Open Multiple Employer Plan?
A Qualified Retirement Plan where unaffiliated employers ‘adopt’ into a retirement plan for the purpose of minimizing costs, reducing employer liability, saving for retirement and enhancing the employee and employer benefits. The multiple employer plan is sponsored by an outside entity that bears responsibility for administering the plan.
Is a MultiEmployer Plan right for your business?
New or growing companies who wish to offer a competitive retirement plan benefit to their employees may want to consider using the MultiEmployer 401(k) Plan for their business.
Existing plans that would like to transfer the operation of their plan because of the related issues and liabilities of running their own plan.
Existing SEP or SIMPLE IRA Plans:
- 401(k) plans allow owners to save more for their retirement and better manage the benefits by using a qualified plan.
Features and Benefits of the MultiEmployer Plan
- Removes the employer as the Plan Sponsor for the company’s retirement plan
- Reduces most of the employer fiduciary liabilities by transferring those liabilities to a professional Plan Administrator and other independent fiduciaries
- The plan administrator serves as the plan sponsor
- The plan designates a 3(16) which covers fiduciary services
- The plan designates a 3(38) fiduciary investment service
- Consolidation of plan management, costs and review
Adopting employers maintain flexibility by determining company contributions, vesting schedules, plan eligibility requirements and other key plan features.
The Open Multiple Employer 401(k) Plan is designed to utilize best-in-class, low-cost Exchange Traded Funds (ETFs), Collective Investment Funds (CIFs), Collective Investment Trusts (CITs), Mutual Funds (MFs) and Fund Models (FMs), which mirror typical investment formats in the large plan market and which are designed for use by and support of independent investment advisers. The unique aspect of the concentric investment policy is the creation of a universe of investments, out of which are spun core products and managed portfolios.