3765 / What is a multiple employer plan (MEP)? Why might the MEP structure be attractive to small and mid-sized business owners?

A multiple employer plan (MEP), also known as an association retirement plan, is essentially a defined contribution plan that is open to employees of multiple employers.

The DOL expanded the rules to allow more employers to participate in MEPs, which is especially valuable for small business owners who can now join with other entities to share in the costs and administrative burdens of providing a qualified retirement plan option for employees. The MEP structure can also encourage small business owners to offer a retirement savings option by limiting the fiduciary liability that can attach to the employer itself. While these benefits can be significant, see Q for a discussion of the “one bad apple rule” that small business owners should understand before adopting the MEP.

Under previous law, the MEP structure was limited to small business owners with a strong connection, such as a common industry.

Importantly, the SECURE Act also simplifies filing requirements for certain related defined contribution plans and individual account plans¹ by allowing them to file a single Form 5500. This further simplifies some of the administrative burdens and costs associated with providing a retirement savings option through MEPs.

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Planning Point: Pooled employer plans (PEPs) are required to report their aggregate account balances for every employer-participant starting with the 2021 plan year and must also report certain information about the plan provider on Form 5500. MEPs are also now subject to new reporting requirements, which they will file in an attachment to Form 5500 starting with the 2021 plan year. The MEP must report year-end account balances for each employer-participant, but the DOL has clarified that this requirement does not apply to MEPs that function as defined benefit plans. The revised Form 5500, released in early 2022, provides information on these reporting requirements, and is also updated for post-SECURE Act retirement plans that were adopted retroactively.

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To be eligible for consolidated filing, the plans must share:

• the same trustee;


• one or more of the same named fiduciaries;


• the same administrator;


• plan years beginning on the same date; and


• the same investments or investment options for participants and beneficiaries.²