A Multiple Employer Plans Primer: Exploring Their Potential to Close the Coverage Gap

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The report’s key findings are:

  • About half of private sector workers are not covered by an employer retirement plan at any given time; this coverage gap is driven by small firms.
  • To encourage more small firms to adopt plans, policymakers have made it easier to participate in Multiple Employer Plans (MEPs).
  • MEPs reduce the administrative burden and fiduciary responsibilities of a stand-alone plan, and – in theory – could be cheaper.
  • But it’s not clear that they do cost less, and any such assessment should consider employee – as well as employer – fees.
  • Overall, while MEPs could be attractive, adoption may be slow due to unfamiliarity with the product and uncertainty over any cost advantage.