Pub. 2 2011 Issue 4

www.wvbankers.org 10 ANOTHERKEY BENEFIT – THEMEP SPONSOR’S FIDUCIARY ROLE Today’s regulatory environment and compliance challenges make fiduciary oversight more important than ever. One of the key benefits of a multiple employer plan is fiduciary relief—as theMEP sponsor assumes principal fiduciary responsibilities associated with sponsor- ing a retirement plan. TheMEP plan sponsor also ensures that the plan remains in full compliance with IRS and DOL regulations, pro- viding plan amendments and regulatory updates as needed. The level of ERISA fiduciary protection aMEP offers relieves plan sponsors of the due diligence and ongoing monitoring of plan investments. HOWARE PLAN INVESTMENTS TYPICALLYHANDLED? Under aMEP, the sponsor also serves as investment fiduciary. As the investment fiduciary, theMEP sponsor evaluates, identifies, selects and monitors plan investments, offering a fiduciary process that includes an investment policy statement, investment evaluation and selection, and ongoing monitoring and performance reporting. The ERISA section 3(38) investment fiduciary oversight and responsibil- ity that theMEP sponsor assumes relieve adopters of the burden of due diligence and ongoing monitoring of investments. As an investment fiduciary, MEP sponsors offer the benefit of careful oversight of investment options for participants that are regularly scrutinized for appropriateness, provide rigorous style consistency and the opportunity for broad diversification and asset allocation—and the benefit of due diligence built around the fidu- ciary responsibility that the sponsor assumes to ensure that plan investments are appropriate for a qualified retirement program. A MEP provides a single Investment Policy Statement that covers all adopting companies. Fund monitoring is done at the MEP Trustee level on behalf of all adopters. Documentation of fiduciary deci- sions is critical due to increased scrutiny by adopters & regulators. Typically, a MEP’s investment fund menu will generally be identi- cal for all adopting companies. Investment menus should be broad enough to satisfy the investment needs of potential adopters and simple enough to be user-friendly to employee groups of widely varying investment sophistication. WHENDOES AMEPMAKE SENSE? MEPs are an ideal retirement plan solution in many situations, particularly where fiduciary liability is an issue, when there is no current plan in place because of the complexities involved in offer- ing one, for bona fide employer groups, where clients with multiple payrolls are looking for synergy, in decentralized organizations looking for leverage, and in organizations looking for value-added services for members or affiliates. For more information about how Pentegra Retirement Services consultative approach can help banks determine if a multiple employer plan is the right retirement plan solution, please, contact Mark Hogan, Regional Director, at 800-872-3473, Ext. 579, or mhogan@pentegra.com . n Live Events January 17 Bankers Day at the Capital & Legislative Reception February 23 IRA Basics Seminar 24 IRA Advanced Seminar March 13 & 14 Bank Security School 29 Safe Deposit Fundamentals and Issues 30-4/5 ABA National Compliance Schools April 15-20 GSB Human Resource Management School 22-27 ABA National Commercial Lending Schools 22-27 GSB Bank Technology Management School 22 Money Smart Week 24 ABA Teach Children to Save May 17-24 ABA School of Bank Marketing & Management 17 Financial & Estate Planning Seminar 20-25 WV School of Banking 20-25 Lloyd P. Calvert Graduate School of Banking 20 – 6/1 Graduate School of Banking at LSU July 29-31 WVBA Annual Convention Dates to be Announced Compliance Updates Branch Manager Certification Series Visit www.wvbankers.org and click on the Event Calendar as new events are added. Webinars — Both Live and Recorded Visit our website as dates and topics are announced. Graduate School of Banking Online Senior Management Seminars Visit www.gsb.org or our website as updates are added. Calendar of Events Register online at www.wvbankers.org