1. Re-writing the rules on retirement plan investing

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

3. 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?

4. Structure of a MEP? Company A Company B Company C Fee based
Qualified 401(K) plan
Established under IRS (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?

5. 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.

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

7. 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

8. 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

9. 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

10. 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

11. 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

12. Investment Options

13. Adoption Agreement Executed1
Adoption Agreement Executed
Advisor meets with Employer to review MEP Plan structure and execute Adoption Agreement
Obtain Census data from Employer
Process

14. FutureBenefits of America initiates new plan or takeover plan procedures2
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

15. Participants begin to invest3
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

16. Participant View

17. Participant Summary

18. Participant Resources