How Can Open MEPs Help Plan Advisors to Grow Their Business?

President Trump with his Executive Order on Retirement plans expanded the horizons of better retirement to many people who before had no chance to retire comfortably and securely. It helps to close the gap between many employees working for small companies which do not have the ability to set up an internal retirement plan for their workforce. The mechanics of this new process allow a group of small firms to participate in the Multiple Employer Plan (MEP) to offer the opportunity for employees to save portions of the paycheck on their retirement accounts.

Also, “MEPs have a structural advantage over other forms of retirement programs—they allow employers to be relieved of plan administrator responsibilities to a greater extent than is possible under a single employer plan structure, making them one of the simplest arrangements for employers who wish to offer retirement benefits,” Pentegra CEO and President John E. Pinto said.

Finally, despite the fact that this is a new development in the market, it can be an additional source for advisers to grow their business as mentioned in the article “Open MEPs Could Create Many Opportunities for Advisers”. The employer will need a sound advice on the funds line up, record keeper selection, employee education and many others which will be difficult to deal with for employers who never offered retirement plan to their employees before.