How a Multiple Employer Plan Makes Retirement Plans Easier for Small Businesses

Most small business owners want to offer retirement benefits. They just don't want the headache that comes with it. The paperwork, the compliance maze, the fees that pile up faster than you can justify them — it's enough to make you skip the whole thing. But here's the reality: your best people expect it. And if you can't deliver, someone else will.

That's where Multiple Employer Plans come in. They're not flashy. They're not new. But they work. And for businesses that don't have an HR department or a benefits consultant on speed dial, they're one of the smartest moves you can make.

The Setup That Actually Makes Sense

A Multiple Employer Plan lets unrelated businesses band together under one retirement plan. You're not going it alone. You're not building infrastructure from scratch. You're joining a structure that's already running — and splitting the load with other employers who are in the same boat.

Think of it like shared office space, but for retirement plans. You get access to the same tools, the same compliance framework, the same administrative backbone — without footing the entire bill yourself. The plan sponsor handles the heavy lifting. You handle your employees. That's the deal.

Someone Else Does the Filing

Running a retirement plan means dealing with the IRS, the DOL, and a stack of forms that never seems to shrink. Form 5500. Nondiscrimination testing. Annual notices. It's a full-time job disguised as a benefit.

With an MEP, most of that responsibility shifts to the plan administrator. They file the paperwork. They track the deadlines. They make sure the plan stays compliant. You still have obligations — don't get it twisted — but the day-to-day grind? That's off your plate.

Lower Costs Because You're Not Alone

Traditional retirement plans hit small businesses hard on cost. Setup fees, recordkeeping charges, investment management expenses — it all adds up. And when you're only covering a handful of employees, those per-participant costs can feel brutal.

MEPs pool assets across multiple employers, which drives down the per-person expense. You're leveraging scale without needing to be a big company. The result is better pricing on administration, better access to institutional investment options, and fewer surprise bills at year-end.

Here's what you're typically saving on:

• Plan setup and design fees
• Annual recordkeeping and administration
• Investment management costs
• Compliance and audit expenses
• Legal and consulting fees tied to plan maintenance

Fiduciary Risk Gets Spread Out

When you sponsor a retirement plan, you take on fiduciary responsibility. That means you're legally accountable for how the plan is run, how investments are chosen, and whether participants are being treated fairly. Mess it up, and you're exposed.

MEPs don't eliminate fiduciary duty, but they do redistribute it. The plan sponsor or third-party administrator typically assumes a large portion of that responsibility. They're the ones making sure the plan follows ERISA rules. They're the ones ensuring investments are prudent. You're still involved, but you're not carrying the full weight.

That matters when:

• You don't have in-house legal or HR expertise
• You're worried about personal liability
• You want professional oversight without hiring a consultant
• You need someone else to handle DOL audits or inquiries
• You're trying to avoid costly mistakes that come from inexperience

Your Employees Get What They're Looking For

Retirement benefits aren't just nice to have anymore. They're table stakes. If you're hiring skilled workers, competing for talent in a tight market, or trying to keep your best people from jumping ship, a 401(k) is part of the conversation.

MEPs let you offer that benefit without the infrastructure of a Fortune 500 company. Your employees get access to a professionally managed plan. You get to check the box on benefits without building it from the ground up. And when retention matters, that's not a small thing.

You Still Get to Customize

Just because you're joining a shared plan doesn't mean you lose control. Most MEPs let you set your own eligibility rules, contribution levels, and vesting schedules. You're not locked into a one-size-fits-all structure.

Want to match employee contributions? You can. Want to auto-enroll new hires? That's an option. Want to keep things simple with a safe harbor design? Go for it. The flexibility is there — you just don't have to reinvent the wheel to use it.

Common customization options include:

• Employer match formulas
• Eligibility waiting periods
• Vesting schedules for employer contributions
• Auto-enrollment and auto-escalation features
• Loan and hardship withdrawal provisions

The SECURE Act Opened the Door Wider

Before the SECURE Act passed, MEPs were mostly limited to employers with some kind of common bond — same industry, same trade group, same geography. That kept a lot of small businesses out.

Now, unrelated employers can join together in what's called an open MEP or a Pooled Employer Plan. You don't need a shared connection. You just need to meet the plan's participation requirements. That change made MEPs accessible to a much wider group of businesses — and it's why adoption has picked up in the last few years.

What It Takes to Get Started

You don't need to be a benefits expert to join an MEP. You do need to work with someone who knows the landscape — a retirement plan advisor, a third-party administrator, or a financial professional who specializes in small business benefits.

They'll walk you through the options, explain the fee structure, and help you compare MEPs to other plan types. Some MEPs are industry-specific. Others are open to any business. Some are run by financial institutions. Others are managed by professional employer organizations or trade associations.

Here's what to ask before you sign on:

• Who handles fiduciary responsibility and how is it divided?
• What are the total fees, and how are they allocated?
• What investment options are available to participants?
• How is compliance managed and who files the Form 5500?
• What happens if one employer in the plan has a compliance issue?

When It Makes the Most Sense

MEPs aren't for everyone. If you're a larger business with dedicated HR staff and the budget to run your own plan, you might not need one. But if you're a small or midsize business that wants to offer retirement benefits without the overhead, an MEP is worth serious consideration.

It's especially useful if you're stretched thin on administrative capacity, worried about compliance risk, or just tired of paying more than you should for a benefit that's supposed to help your team. The structure is there. The savings are real. And the complexity? Someone else is handling it.

Retirement Benefits Without the Chaos

Offering a retirement plan shouldn't feel like a second job. And with a Multiple Employer Plan, it doesn't have to. You get the benefit, your employees get the security, and you avoid the mess that comes with going solo. It's not about cutting corners — it's about using a smarter structure that was built for businesses like yours. Get pricing information to see how an MEP can work for your business, or explore what other businesses have experienced after making the switch.

Let’s Simplify Your Retirement Plan Journey

WeWe know how overwhelming it can be to navigate retirement plan options while running a business. That’s why we’re here to help you make sense of Multiple Employer Plans and find the right fit for your team. If you’re ready to take the next step or just want to talk through your options, give us a call at 844-637-4015. When you’re ready to move forward, you can always contact us and let’s make retirement benefits easier together.