Perhapsthe best way to study up on MEP is to researcharticles that werewritten in the years before the concept became popular. (Photo:Shutterstock)

The SECURE Act is now a matter of law, and thatmatters to you.

The close of 2019 saw the passing of a new retirement law thatmay become just as significant as the 2006 Pension Protection Act(PPA). You may not remember what made the PPA so important, butwithout its QDIA provision, auto-enrollment, and push away fromstable value funds, the gigantic target date fund industry mightnot have become so gigantic.

Will the 2019 SECURE Act contain a similar industry changer?

The broad answer is yes, although the specifics might be subjectto debate since some aspects of the legislation won't be triggereduntil future plan years. One of those specifics—the open 401(k)MEP—has all the markings of the next retirement plan TDF. (To befair, 401(k) MEPs may actually give TDFs a further boost.)

Related: Will association fear hold back 401(k) MEPs? –Carosa

The open MEP differs from the closed MEP in that open MEPs canbe created and marketed by firms with experience solely selling andservicing retirement plans. In contrast, closed MEPs could only beoffered and promoted by business associations who must also offerand promote a full menu of benefits and services to theirmembers.

We're probably a year away from seeing existing plans begin totransition to MEPs, but it makes sense for smaller companies to doso. It will save them time and money and lower their fiduciaryliability.

But don't wait for this interest to arise before becoming an MEPexpert. It may mean the difference between a dinosaur retirementplan business model and a vibrant and sustainable one.

What's the best way to study up on the MEP? To begin with, beforewarned. Over the next several months, the trade media will beinundated with articles on the subject. Some of them will be good;some of them will not. Perhaps a better way to begin is to researchMEP articles that were written in the years before the conceptbecame popular. These will help you identify the most experiencedpractitioners.

Likewise, look for trade associations that have long championedthe MEP cause. They will have featured speakers on the topic attheir annual conferences. Again, these speakers represent theveteran MEP professionals. Get their names and see where they willbe speaking next.

Finally, there will be new venues in which you can immerseyourself in the MEP experience. The best will evolve from credibleoutlets. The worst will be fly-by-night ventures. Use a littlecommon sense here, as due diligence can be less costly than wastingyour time and money on opportunists.

With the SECURE Act, there's a very good chance the MEP willbecome the standard 401(k) solution for all but the largestbusinesses. But the real significance won't be the growth of thesenew retirement plan vehicles. It will be the sudden appearance andexponential growth of the cottage industry needed to support the401(k) MEP.

You may find the MEP will spawn greater opportunities for youtomorrow than you can imagine today.

READ MORE:

• Commonality for MEPs proposed for businesses insame state, municipality
• The DOL's MEP proposal: Is Labor pickingwinners?
• Would open MEPs disrupt the 401(k)market?