Re-writing the rules on retirement plan investing

Table of Contents Define MEP Key Parties Investment Selections Participant View Next Steps

What is a MEP? The MEP Plan is a fee-based, qualified 401(k) retirement plan established under 413(c) of the Internal Revenue code that permits unaffiliated Employers to adopt into a retirement that bears the fiduciary responsibility for administering the plan. What is a MEP?

Structure of a MEP? Company A Company B Company C Fee based Qualified 401(K) plan Established under IRS 413(c) Permits unaffiliated employers to each sponsor and adopt into a retirement plan giving fiduciary responsibility to a trust company that bears the responsibility for administering the plan. Company C Structure of a MEP?

Employer is the Plan Sponsor Outsource the Fiduciary role to the MEP “Although Open MEPs are being discussed as something new, they are clearly a continuation of the established MEP plan structure. The advantages they offer should be a consideration for any employer exploring their fiduciary and administrative options.” -Fred Reisch Open Multiple Employer Plans “Although Open MEPs are being discussed as something new, they are clearly a continuation of the established MEP plan structure. The advantages they offer should be a consideration for any employer exploring their fiduciary and administrative options.” -Fred Reisch Open Multiple Employer Plans Employer is the Plan Sponsor Outsource the Fiduciary role to the MEP ERISA 3(38) and 3(21) Fiduciary protection Each sponsor will have their own Form 5500 Outsource Plan document and compliance testing *A monthly fee and administrative cost of operating the plan are charged to the employee. There are no costs directly to the employer.

Key Parties and Responsibilities Financial Advisor ERISA 3(38) Fiduciary Portfolio Strategist Key Parties and Responsibilities

Plan Trustee Plan Trustee Fiduciary Doctors in it’s role of Trustee of the plan exercises discretionary authority of the plan assets and control and management of the 401k Plan. They are the named Fiduciary and are considered a fiduciary within the meaning of ERISA section 3(21). The ERISA section 3(16) Fiduciary has responsibility of the plan. Fiduciary functions such as investment direction and administration of the plan can be delegated to other service providers but the ultimate responsibility of maintaining the plan resides with the Trustee of the plan. Fiduciary Doctors in its roll of plan administrator and Trustee is also considered the Plan Administrator. The Plan administrator’s primary responsibilities include ensuring all filings with the federal government (form 5500, etc.) are timely made. Other services include making important disclosures to plan participants and fulfilling other responsibilities as set forth in the plan document. The “Plan Administrator” of a qualified retirement plan is defined in section 3(16) of ERISA. Plan Trustee

Third Party Administrator & Recordkeeper FutureBenefits of America serves as the Plan’s recordkeeper and Third Party Administrator(TPA). FutureBenefits of America’s role as TPA includes administering compliance testing and the preparation of IRS Form 5500 for the MEP. Probably the most important role of the TPA is to help create and maintain the Plan Document. The Plan document gives direction of how the plan operates and what provisions are allowed such as contributions, distributions and other options. The record keeping function provides processing of all payroll uploads and plan administrative services including, tracking participant eligibility and vesting status as well as participant services which include managing the website, operating the call center and providing participants with quarterly statements. FutureBenefits of America is also responsible for the conversion of assets from prior plans or IRA’s and setting-up new adopters into the Plan. FutureBenefits of America is also responsible for managing the relationships and serving as NEW PLAN advocate with the other service providers. Record Keeper and TPA

Acts as the custodian over the Master Trust and assets Acts as the custodian over the Master Trust and assets. Currently oversees over $8 billion in employee benefit assets nationwide. Ability to trade investment models for the 401(k) marketplace through ModelxChange. Custodian

Portfolio Strategist Risk Based Portfolios ETF Advisor k offers all participants in the plan professionally managed asset allocation portfolios. These portfolios are constructed by money managers that construct their models with various degrees of diversification and risk levels so that the participant can select an investment that best matches their own unique risk and time horizons. These are not target date or generic asset allocation funds. They are actively managed and rebalanced to maintain their stated Investment Policy objectives Portfolio Strategist

Sponsor/Employer Responsibilities The need to make timely and accurate plan contributions Plan design decisions Distribution to participants Communication and enrollment assistance with participants Sponsor/Employer Responsibilities

Investment Options

Adoption Agreement Executed 1 Adoption Agreement Executed Advisor meets with Employer to review MEP Plan structure and execute Adoption Agreement Obtain Census data from Employer Process

FutureBenefits of America initiates new plan or takeover plan procedures 2 Employer provides all information from existing plan If applicable, notification of plan termination from old plan and move to ETF Advisor k MEP Plan Process

Participants begin to invest 3 Plan is live Participants begin to invest Plan is approved and ready to receive funds Employer responsible for all payroll uploads Participants begin to invest Process

Participant View

Participant Summary

Participant Resources