Joining a Multiple Employer Plan (MEP) makes it easier and more affordable for businesses to offer a 401(k) to their employees. A MEP allows unrelated employers to participate in a shared retirement plan. By joining forces with other companies, employers can lower their costs through group pricing on administrative services and investment fees. This setup is especially helpful for small and mid-sized businesses that want to provide a competitive retirement benefit without the time, cost, or complexity of managing a plan on their own. Since MEPs are typically managed by professional plan administrators, much of the day-to-day work and fiduciary risk is taken off the employer’s plate.
Another major perk of a MEP is the built-in simplicity. Responsibilities that usually fall on the employer—like staying compliant with government regulations and handling annual reporting—are taken care of by the plan provider. Many MEPs also offer flexibility, allowing employers to customize features like auto-enrollment, matching contributions, or vesting schedules to meet the needs of their workforce. For businesses looking for a lower-risk, hands-off way to offer meaningful retirement benefits, MEPs offer a practical and scalable solution.
Fred Barstein, CEO and founder of 401kTV and The Plan Sponsor University (TPSU), recently hosted a TPSU program at the scenic University of Denver campus. After the session, he sat down with Shannon, the principal of employee services at a Denver-based environmental engineering firm with 92 employees, to learn about her company’s experience.
Shannon shared how her firm transitioned from a SIMPLE IRA to a 401(k) by joining a MEP through the ACEC retirement trust. While affordability was a major factor, the MEP structure also helped reduce the company’s fiduciary liability and made it easier to get started with managing a 401(k). She described the experience as smooth and beneficial—highlighting how the company was able to add plan features like auto-enrollment as they became more comfortable with plan design. Overall, Shannon said the MEP has been a great fit for both the company and its employees—offering the right balance of support, flexibility, and value.
Read the Full Transcript Here:
Fred Barstein:
Greetings. This is Fred Barstein, CEO and founder of 401kTV and TPSU. Just completed a program at the beautiful campus of the University of Denver, 83 degrees here in Denver in May. And I am here with Shannon. Welcome, Shannon.
Shannon:
Thank you for having me.
Fred Barstein:
Okay if we ask you a few questions?
Shannon:
Absolutely.
Fred Barstein:
So before we start, tell us a little bit about yourself?
Shannon:
Yeah, so I am our principal of employee services for an environmental engineering firm here in Denver, and we have about 92 employees.
Fred Barstein:
Great. So you did say you were part of a PAP, but it’s really a MAP, a multiple employer plan. Can you tell us why you joined, and what you like about it and what maybe you don’t like about it?
Shannon:
Absolutely. So our company got to a point where we wanted to get out of this simple plan and into a 401k for our employees. And we looked into several options, and we found that the ACEC life, it’s not their life health, sorry, it’s their retirement trust actually was a really good option for us and an affordable option.
Fred Barstein:
And so you did it for costs. Were there other reasons you might’ve done it?
Shannon:
I think it also helped us get familiar with the 401k, which is not something that we had had before. And then it also reduced some of the liabilities that a plan sponsor might have, the way that they are organized.
Fred Barstein:
Did it work out that way?
Shannon:
Absolutely. I think so. Yes, we do like it, yeah.
Fred Barstein:
Is there anything you don’t like about being in the group plan?
Shannon:
No, I think it’s actually really incredible for all of our employees. I think we’ve changed our plan a couple times to allow for, I guess, more options like-
Fred Barstein:
Right, so you-
Shannon:
… auto enroll.
Fred Barstein:
… have a little bit of customization.
Shannon:
Yeah. As we learn, we start to do some more of that stuff.
Fred Barstein:
Very good. Final question, a couple of things you learned today?
Shannon:
Oh, my gosh. Today was great. The employee engagement side and help even more ways to get more enrollment is awesome engagement from employees and it’s kind of that financial health or wellness.
Fred Barstein:
And would you recommend TPSU to-
Shannon:
Absolutely.
… our audience?
Fred Barstein:
Absolutely. In HR we always get a ton of calls every day. You’re trying to avoid the sales calls, and I thought this was very educational, and I didn’t feel like it was a sales event.
Very good.
Shannon:
So thank you.
Fred Barstein:
Thank you.
Shannon:
Yes.
Fred Barstein:
Thanks for your time today. And thank you for watching 401kTV. Please stay tuned.
