Thanks to newer regulations set by the U.S. Department of Labor, employers with commonalities can now band together and have their 401(k) plans treated as a single retirement plan. This enabled the Michigan Chamber of Commerce to create such a plan exclusive to its members. As a longtime Michigan Chamber member, Tri-Star Trust is proud to be the administrator for this entire plan.
The Michigan Chamber Multiple Employer 401(k) Plan (MiMEP) is a retirement plan solution designed for businesses with two to 150 employees. By participating in the MiMEP, small businesses have access to retirement plan choices often only available to larger companies. You and your employees will get all the advantages and flexibility of a stand-alone tax-deferred plan, but without the expenses and administrative burden associated with sponsoring a single-employer plan.
As a small business owner who is looking to attract and retain quality employees, you look for resources that will give you a competitive advantage and allow you to provide financial stability to your workforce. MiMEP may be right for you. Our team of retirement benefit experts can help you decide which kind of plan best meets the needs of your company and employees.
By combining resources, we can achieve economies of scale that lower expenses and better position your employees for a successful retirement outcome.
Transfer the required paperwork and administrative burden to our team of financial experts. You do not need to worry about many of the administrative duties, such as IRS filings.
The MiMEP reduces fiduciary liability since the adopting employer is no longer the trustee or plan administrator for their retirement plan. Included in the plan is all 3(16) fiduciary services and 3(38) investment management services.
MiMEP is managed and administered by Tri-Star Trust, a long-time Michigan Chamber member. Tri-Star specializes in full-service wealth management, business 401(k) solutions, financial planning, and charity and foundation wealth management. Talk to a Tri-Star retirement specialist to see how your business might benefit from joining MiMEP.
MiMEP is a Multiple Employer Plan (MEP) that offers a fully customizable, turnkey retirement plan to employers at lower costs.
This was made possible because of new regulations set by the U.S. Department of Labor in 2019, which allow employers with commonalities to band together and have their 401(k) plans treated as a single retirement plan.
MiMEP is open to the more than 5,800 member employers, trade associations, and local chamber of commerce organizations. The MiMEP is designed for businesses with between 2 to 150 employees and is now open for enrollment.
Based on the unique structure of this plan, fiduciary liability is transferred to the ERISA 402 and ERISA 3(16) fiduciary, and further to an ERISA 3(38) fiduciary via a contract executed between the plan custodian, adopting employer, and 3(16) fiduciary. The advisor provides support to the adopting employer and becomes the liaison between them and the other providers. That means employers who were formerly acting as the plan administrator with a standalone plan can significantly reduce fiduciary liability.
A small business employer and their employees both win by participating. By pooling assets under one plan, Michigan Chamber of Commerce members can benefit from economies of scale and offer an attractive retirement savings option at a lower cost to their employees. Adopting employees will be offered a menu of investment options that allow for self-direction and will receive regular statements on their plan. MiMEP also allows for custom design, so that each adopting employer can implement provisions — such as eligibility and matching — that meet specific needs.
There is no onboarding fee if you have a current 401(k) plan with assets. With new plans, there is a $1,000 onboarding fee for the plan startup, which the employer pays. Employers also are responsible for a $1,300 annual fee. Employee participants pay $70 per year, plus a Trust & Custody fee of five basis points a year and an annual financial advisory fee of 35 basis points per year.
For example, if MiMEP has 100 participants with $10,000 each in their accounts, participants would pay 40 basis points plus $70 per year, for a total of $110 per year, or only $27.50 per quarter.