6 Proven Ways Open MEPs Will Help Your Business to be Successful

It’s no secret that financial security during one’s retirement years can be a huge source of stress. In fact, over half of employees surveyed by Charles Schwab said a 401(k) is their number-one choice of benefits programs. (90% ranked it as a top-three choice.)

If you’re a small business employer/owner these numbers may leave you feeling defeated. Or defensive.

You might be thinking, “I’m not being stingy. I’d love to offer a retirement plan to my employees, but we just can’t afford it.” Or maybe 401Ks are too confusing and you feel like you don’t have the time to administer one.

The fact is retirement benefits can feel out-of-reach for small businesses—but they don’t have to be.

Enter the Open MEP (Multiple Employer Plan)!

(If you haven’t already, check out our previous article on the history of Open MEPs.)

Why Open MEPs May Be a Great Option

An Open MEP is a fantastic tool for today’s business owner. Because the benefits of Open MEPs impact a company’s bottom line, they’re also a win-win for both employers and employees.

Here are several reasons why an MEP may be an appealing option for your business:

1. Lower Retirement Plan Expenses

By combining resources with all of the other companies associated with the MEP, you achieve an economy of scale that lowers expenses and better positions your employees for a successful retirement outcome.

2. Eliminate Conflicts-of-Interest

Open MEPs’ are an “open architecture” investment platform, free of any potential conflicts-of-interest. This means that clients are able to have access to funds offered by competing institutions and fund managers–resulting in deeper trust in your retirement investments.

3. Expand Your Choices

Our Open MEPs allow employers to cast their nets across a wider range of funds in order to realize greater returns. Adopting employers will be provided a menu of investment options that incorporate risk-based portfolios selected by the 3(38) Investment Fiduciary, along with core investment options that allow for self-direction.

4. Reduce Your Liability

Open MEPs significantly reduce fiduciary liability for the adopting employer because the employer is no longer the trustee or plan administrator for their retirement plan. Responsibility is transferred to an independent fiduciary who carries the overall burden as the plan administrator and lead fiduciary.

5. Increase Flexibility

Open MEP plans allow for custom design so that each adopting employer can implement provisions (e.g. eligibility, matching) to fit their specific needs.

6. Widen Your Talent Pool

Most companies can’t afford other options when it comes to retirement. Open MEPs enable you to offer potential employees retirement plans which gives you a competitive edge in today’s job market. It’s a benefit that can also help you retain your current talent.

Are You Interested in Learning More?

If we’ve piqued your curiosity about why an Open MEP may be a winning option for your (or your client’s) business, download our free guide, What is an Open MEP? In it, you’ll find out how Open MEPs work and more about how they can be an attractive benefit for your business. If you have any further questions about the benefits of Open MEPs, please don’t hesitate to schedule a discovery call to see how we at FutureBenefits of America can help you provide for your employees or clients.