Small- and mid-sized plan sponsors could benefit from the use of Open Multiple Employer Plans or MEPs, says law firm DrinkerBiddle.
According to the firm's recent white paper, "Open Multiple Employer Plans: Tax and ERISA Considerations," there are no policies under ERISA or the tax code to prohibit the formation of such plans.
A MEP is a single retirement plan that covers many unaffiliated employers, with a centralized administrative and fiduciary structure. And even though each employer included in the plan can offer its employees different offerings, all "MEP participants are treated as the employees of all the participating employers," the report said.
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