Multiple Employer Plan

A Multiple Employer Plan (MEP) in insurance is a type of retirement plan that allows multiple small employers to participate in a single retirement plan. In this type of plan, each participating employer maintains its own account in the plan and is responsible for making its own contributions.

Here are some key features of a Multiple Employer Plan:

• Allows multiple small employers to participate in a single retirement plan.
• Each participating employer maintains its own account in the plan and is responsible for making its own contributions.
• Generally less expensive than maintaining an individual retirement plan for each participating employer.
• Requires a "pooled plan provider" to serve as the plan administrator and fiduciary.
• Can be offered as a 401(k), 403(b), or defined benefit plan.
• The plan is regulated by the Employee Retirement Income Security Act (ERISA).

An example of a Multiple Employer Plan is a retirement plan offered by a trade association that allows its member companies to participate. By pooling their resources, these small companies can offer a competitive retirement plan to their employees while reducing the administrative and fiduciary burdens that come with maintaining an individual retirement plan.