We know attracting and keeping talent is crucial to a business’s success — and we know how difficult it can be for smaller and mid-size companies to compete with the bigger ones. At Compass, we make it our mission to find the smartest options for companies of every type and every size — even the smaller ones. How do we do that? We service a full spectrum of pooled plan choices, aka Group Solutions.
Group Solutions are often the best plans for smaller businesses that want to offer competitive benefits for their employees. How does it work? The SECURE Act of 2019 sought to broaden the opportunity for more workers to participate in 401(k) plans. The result was the creation of group plans that bring together multiple small businesses and offer cost-effective 401(k) plans for their employees.
We know the ABCs and 123s of all the acronyms, so we can guide you through all of the options and find the best one for your clients:
- MEP – Multiple Employer Plans: A pooled option for related businesses (such as an association or trade group) sponsored by an entity related to the employer
- PEP – Pooled Employer Plans: Includes unrelated employers and requires a Pooled Plan Provider (PPP), usually a recordkeeper, third party administrator or investment advisor
- MEAP (Multiple Employer Aggregation Program) or GOP – Group of Plans: Not a pooled option but individual plans of related or unrelated businesses, that have the same administrator, trustee, fiduciary, investments, etc but can file a single IRS Form 5500, saving costs and time