|Feb 10 2016
401(k) DOL offers Multiple Employer Plan Initiative
By: Rob Lynn
Secretary of Labor Tom Perez recently announced new retirement plan initiatives that President Barack Obama will put forward in his 2017 budget, including asking Congress to make it easier for different employers to pool together in a shared 401(k) plan, known as a multiple employer plan (MEP) The Department of Labor is making this initiative because one out of two employees who work for a company with 50 or fewer employees, do not have access to a retirement savings plan. Less than 10% of those that do not have an employer sponsored plan contribute to a retirement savings account.
The Department of Labor (DOL) wants to work with Congress to make it easier for multiple employers to get together and offer open MEPs, “which will allow them to share administrative costs and to reduce some of their compliance burdens,” Perez said during the call. “These arrangements have the potential to be a low-cost, high-quality option for small businesses. “
Total Team Solutions clients currently participate in our Plan 401(k) because it is a MEP that streamlines administrative costs, greatly reduces compliance burdens and offers high-quality institutional grade investments choices. Total Team Solutions is the fiduciary and takes full responsibility for compliance testing. With Total Team Solutions long term partnership with Alerus, Angell Pension and Edward Jones, the 401(k) platform is very well run and is one of the most cost effective retirement solution for small & mid-sized companies.
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