Erisa Retirement Plan In Wake
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FAQ
Chances are if you've been in the building automation industry for any period of time you've seen mechanical, electrical, and plumbing (MEP) plans. These plans are the blueprints that detail out how a building should be built.
The Employee Retirement Income Security Act of 1974 (ERISA) is a federal law that sets minimum standards for most voluntarily established retirement and health plans in private industry to provide protection for individuals in these plans.
An MEP is an employer-sponsored retirement plan allowing multiple businesses to band together and offer a single retirement plan to their employees. This type of plan allows employers to pool resources, reduce costs, and provide a more robust retirement benefit than they could on their own.
IRS Form 5500 applies to most public and private sector businesses providing plans to 100 or more participants. It must be filed electronically using the DOL ERISA Filing Acceptance System (EFAST2).
A multiple employer plan (MEP) is a retirement savings plan adopted by two or more employers that are unrelated for income tax purposes, as defined by the Internal Revenue Service (IRS) and the U.S. Department of Labor (DOL).
The Schedule MEP provides information about multiple- employer pension plans (MEPs). It consists of three parts. All MEPs must complete Parts I and II to indicate the specific type of plan or arrangement, to complete a list of participating employers, and to provide certain required information.
Check Your Plan Documents: Review your Summary Plan Description (SPD) or other documents. ERISA plans must provide an SPD that clearly states they are an ERISA plan. Look at Employer Contributions: If your employer contributes to the plan or matches your contributions, it's likely an ERISA plan.
Schedule MEP (Form 5500) must be attached to a Form 5500 or Form 5500-SF filed for a pension plan that checks the “multiple-employer plan” box on Part I of Form 5500 or Form 5500-SF, to provide information specific to such plan, including a list of participating employers and related information.
The easiest way to find out whether you are enrolled in a self-funded ERISA plan or whether you are enrolled directly in the state-regulated HMO or insurance company is to ask your employer.
ERISA requires a written plan document for each employee health and welfare benefit plan. A sponsor may choose among several different approaches to meet these plan document requirements. Assume an employer sponsors medical, dental, life insurance and long-term disability benefits.