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PEP Rally In Congress Lead By TPSU Adjunct Lecturer. The biggest issues and hurdles for most small and mid-size that have or are thinking of starting a 401k plan are costs, work and liability. Multiple employer plans or MEPs have grown in popularity over the past decade allowing companies with a common interest like those in an association to pool resources to get better buying power and outsource most of the work and much of the fiduciary liability.

But unaffiliated companies that want to join a MEP face two issues: they must file their own 5500 form and if one company fails testing, all are affected known as the “one bad apple” rule.

But there is legislation in Congress called pooled employer plans or PEPs that would allow unaffiliated companies to band together. Hear how Jania Stout, a TPSU Adjunct Lecturer and practice leader at Baltimore based Fiduciary Plan Advisors testified before the U.S. House of Representatives Ways and Means Committee extolling the need and benefits of PEPs.

With little opposition and a 26-0 vote out of Committee, PEPs seem likely to pass. Hear from a plan sponsor who is the lead sponsor of a current MEP about the benefits her members enjoy.

And let your local congressman know if you are in favor – grown support is very important.


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