Consider How Joining OSAE’s MEP Could Help Your Organization
Reduce Your Fiduciary Responsibility by Investigating the OSAE Multiple Employer Program 401(k) Plan (MEP)
When it comes to challenges associations and their boards face, fiduciary responsibility is a key concern and often one that is overlooked.
This is the reason why the Ohio Society of Association Executives (OSAE) is investigating the creation of a Multiple Employer Program 401(k) Plan, or a MEP, for our association and affiliate members!
What are the benefits of joining a MEP?
- A MEP reduces the fiduciary liability associated with your current plan;
- Participants can experience lower plan management fees;
- You can improve services for your organization while reducing your organization’s workload; and
- Your organization receives a competitive advantage when trying to attract and retain employees.
FACT: The collective power of joining this program is like that of joining a strong workers’ compensation pool. The larger the collective body, the greater the benefits our members could potentially see.
Consider this: it is your responsibility to meet all the compliance communications regarding your current retirement plan. Missing any one of these notices can cost your organization thousands!
With this program, you can shift the administrative burden of overseeing your retirement plan from your leadership to a third-party administrator.
Those who attended the OSAE 2019 Annual Conference were the first to learn of this offering. It is our goal, as your association, to start a MEP and help you reduce your exposure to risk. To be successful, we need participation by a substantial number of members who currently sponsor a 401(k) plan. The more who are willing to join, the better the price will be when we negotiate with vendors who provide plan services.
Participation in the program will provide fiduciary protection for you and for your board. Additionally, it shifts administrative and compliance burdens from your organization to a third-party. How exactly?
- A fiduciary investment manager will be responsible for selection and monitoring of investments
- A named fiduciary will be responsible for managing most plan operations, including participant enrollments and approving plan distributions
- A fiduciary plan administrator will be responsible for filing Form 5500
- An administrative fiduciary will be responsible for participant communications
All these advantages will be yours. Plus, you can keep your current plan design while joining forces with your fellow members to improve services and reduce the workload. You owe it to yourself, your board and your employees to take advantage of this great opportunity. In fact, it is your fiduciary responsibility to benchmark your current plan to this MEP to make sure you are offering the best retirement program for your employees.
What’s next if you choose to investigate this MEP offering?
Please select this link to the Notice of Intent to Participate (NOIP) in the OSAE Multiple Employer Program. Please complete the form and send it to Peggy Slaughter, whose contact information is on the notice, at Saling Simms Associates, our MEP consulting partners. Either Peggy or someone on her team will contact you to discuss this opportunity and to help you determine whether this is appropriate for your organization.
Please note: Returning the NOIP does not require you to participate, but it will help us lock in start-up pricing with the providers.
As assets in the OSAE MEP grow, costs will continue to be renegotiated – so help us help YOU increase services, lower your costs and enrich your employment offerings with this important retirement benefit program by returning the NOIP today!