The TAG MEP Enhancement Program
What’s Good About MEP’s
Multiple Employer Plan’s have been around for a long time and have large popularity. TAG Resources pioneered the Open MEP® and we own the trademark on that name. What makes MEP’s so popular is the concept of aggregation of lots of plans to take advantage of scale for things like favorable pricing. Audit price sharing, for instance, can provide significant savings for plan sponsors that are required to do annual audits.
Depending on the makeup of the MEP, transfer of fiduciary liability is also an advantage to plan sponsors since that responsibility often moves to the entity offering the MEP.
What’s Bad About MEP’s
While significant fiduciary liability risk moves from the plan sponsor, unfortunately it moves directly to the entity offering the MEP which means that your liability is compounded by the number of members within the MEP. If there is a fiduciary breach, the MEP entity will be the responsible fiduciary.
Additionally, while the concept of sharing of audit expenses is attractive if you are a plan sponsor who is required to conduct annual audits because of your size, if you are a smaller plan sponsor you are paying part of an audit that you don’t need.
The TAG Resources MEP Enhancement Program
The TAG Resources MEP Enhancement program provides a MEP that can be flexible to accommodate the needs of each employer in the membership. If the employer is required to conduct an annual audit they will benefit from the overall MEP audit – which with the TAG program is likely significantly less expensive than the current audit. Any employers in the membership who are not large enough to require an annual audit do not have to participate in the cost of the audit.
A huge advantage of the TAG program to MEP’s is the reduction of fiduciary liability that currently lies with the head of the MEP. TAG provides fiduciary liability protection by performing virtually all the administrative duties involved in running the MEP (which reduces staff cost) and consistently keeps the MEP in compliance with DOL and IRS regulations. The TAG program also provides fiduciary liability protection by accepting responsibility for investments offered by the MEP through a partnership with world renown investment firms.
This Solution Works With Most Recordkeepers
The TAG solution works with most major recordkeeper platforms. The only change you need to make in your existing single employer plans is to name TAG Resources as the administrative fiduciary 3(16) which includes all administrative duties currently in the plan but adds critical fiduciary services that do not currently exist.