Pub. 9 2018 Issue 3

www.wvbankers.org 6 West Virginia Banker I n our continued leadership com- mitment to our bank members, WVBankers is pleased to offer an innovative solution for providing quality retirement benefits at a competitive price. This solution is a “closed” Multiple Employer Plan or (MEP), which allows a group of employers who share common interests and/or organizational relationships beyond the provision of benefits to combine their 401(k) plan assets under a single plan. As part of member outreach initiatives, I have had the opportunity to discuss this value-added service with many bankers throughout the state and find those who have chosen to join believe it is an effective way to manage their 401(k) responsibilities and risks, while experiencing potentially favorable pricing and administrative support that they may not have had otherwise. Most importantly, the MEP offers a significant mitigation of your fiduciary risk. Through our for-profit subsidiary, WV- Bankers will take over the fiduciary role as the plan sponsor. The organization will bear responsibility for recordkeep- ing, legal, and most fiduciary respon- sibilities; thus, allowing participating banks to transfer their inherent fiduciary liability to the MEP. WVBankers will then outsource these responsibilities to third party providers. Here is a quick overview of the program: Metro Benefits will act as an ERISA 3(16) plan administrator and will take responsibility for daily plan operations, including plan document services, participant management services, par- ticipant notices and disclosure services, distribution services, and government reporting services. ERISA 3(16) services will relieve WVBankers from many of the day-to-day administrative burdens associated with sponsoring the plan and moves the HR function away from participating employers. Graystone Consulting will act as an ERISA 3(38) investment manager for the plan and will conduct the research and have the power, within the confines of the investment policy, to manage, acquire or dispose of any assets of the plan. ERISA 3(38) services offers a high level of fiduciary assistance. MassMutual will provide recordkeeping and participant education services to the plan. MassMutual offers powerful administrative systems technology that is flexible, secure and responsive. The WVBankers MEP will be governed by a Board of Trustees within the West Virginia Bankers Association Products & Services Corporation. The Board of Trustees will be responsible for estab- lishing an investment strategy and for monitoring and evaluating the perfor- mance of the service providers. As a closed MEP, the plan will be treat- ed as a single plan under ERISA, mean- ing it will handle consolidated reporting at the plan level, including preparing a Form 5500 and providing data for the annual plan audit. The WVBankers MEP will include a basic plan document and adoption agreement but participating banks will have the option of custom- izing their plans through participant agreements. This will allow for vari- ances in profit sharing, matching, loans, hardship withdrawals, and company stock, resulting in little or no takeaways for adopting banks. Furthermore, the MEP will come with an investment menu with enough variety to suit many diverse member needs. Looking ahead, by increasing the volume of participating banks, the WVBankers MEP will provide additional leverage and lend power to the group overall. With more assets and greater numbers of participating employees, the MEP may enjoy lower fees and bet- ter benefits than individual plans. The benefits for bank members of the WVBankers MEP include: • Reduced investment and adminis- trative fees with a transparent fee structure. • A simplified turnkey process for obtaining a plan document, select- ing and monitoring the investment platform and the record-keeper, IRS reporting, and obtaining an inde- pendent audit. • The ability to outsource most of the heavy lifting to WVBankers and its team of outside experts so that participating banks can significantly minimize their exposure to possible ERISA liability. • Participant counseling and commu- nication strategies to improve out- comes for participating employees. Most importantly, the benefits of joining the WVBankers MEP include the op- portunity for member banks to enjoy a seamless process with the understand- ing that your 401(k) is properly managed and operated. For more information, please contact us directly at 304-343-8838.  WVBankers to Offer Multiple Employer 401(K) Plan to Bank Members A MESSAGE FROM THE PRESIDENT & CEO By Sally Cline