To encourage more small businesses to offer retirement savings options, policymakers approved changes in the SECURE Act of 2019 that made it easier for them to participate in Multiple Employer Plans (MEPs).
Why it matters: MEPs involve less administrative burden and fiduciary responsibilities than a stand-alone retirement plan, and – in theory – could be cheaper.
Yes, but: So far, MEP adoption rates haven’t changed much and a new issue brief from the Center for Retirement Research at Boston College tries to explain why.
By the numbers: In 2022, MEPs represented 0.6 percent of total private sector retirement plans, covering about six percent of active retirement participants.
- The bottom line: According to the issue brief, few firms know about MEPs, some fiduciary tasks remain, exiting a MEP may be difficult, and MEPs can make mergers and acquisitions harder.
