By Kelly Sprekelmeyer
Most 401(k) plans are single-employer plans, sponsored by one employer. Single employer plans require administrative oversight, costly annual audits, 5500 filing, testing and more. Maintaining a plan can cost over $20,000 annually for even the smallest employers.
PlanSource HCM customers can participate in the PlanSource sponsored Multiple Employer Plan. There are many benefits for a business to adopt the PlanSource MEP plan including:
- Substantial cost savings, compared to operating a single employer plan on your own
- Could save a business $10k-$20k annually in audit fees alone
- Master Contract and Primary fiduciary responsibilities are held by PlanSource
- Plan Design Flexibility
- Small employers can increase employee retention and recruiting capabilities
- Access to a more robust investment menu
- Strong Participant Education Support
When you join the PlanSource MEP plan, not only can you save $10,000 – $20,000 annually over a single employer plan, but we also provide customized consultation for each employer to maximize benefits. Each employer selects their contribution level and service requirements, and the drafting and implementation of plan documents are included. Additionally, administration, annual audit & 5500 filing, compliance testing, statements and reporting are included for participating employers at a highly competitive service fee. Our 401k vendor, TransAmerica, offers personalized service, website access and telephone support 24/7 for you and your employees, as well as support and materials for enrolling employees and for ongoing communications.
TransAmerica is a top 5 retirement plan provider with over 70 years in the retirement service business. They currently have 14.1 billion in plan assets under management, over 12,500 retirement plan clients and maintain a client retention and satisfaction rate of 93%. TransAmerica also receives a AA rating from Standard and Poor’s for financial strength.
So what are you waiting for? Contact the service team today to learn more about moving your 401k plan and begin improving your financial strength today!