CBAI 401(k) Multiple Employer Plan
MSTC has partnered with Community Bankers Association of Illinois (CBAI) and Pentegra Services Inc. to create the CBAI 401(k) Multiple Employer Plan (MEP), a unique program available only to CBAI member banks that provides a highly competitive retirement plan with reduced fiduciary responsibility and liability for CBAI member banks.
The CBAI MEP simplifies a bank’s 401(k) program by outsourcing most fiduciary responsibilities and liabilities, eliminating the 5500 filings, and eliminating the plan audit (for larger plans), while providing potential cost savings. Participating CBAI members will have a dedicated team of experts from MSTC and Pentegra to manage the Plan. Each bank in the program retains the ability to customize plan provisions for its employees and the freedom to select its own financial advisor.
Most importantly, the MEP is controlled by an oversight committee comprised of representatives from participating banks. The participating banks will have direct input into the Plan structure, funds selection, fees, etc.
“We believe the CBAI 401(k) MEP has the potential to save CBAI member banks money, reduce their administrative burdens, expand the scope of services and number of funds available to participants, and help banks avoid much of their fiduciary liability,” said Mike Estes, president of Fisher National Bank and chairman of the CBAI 401(k) MEP Oversight Committee. “That is why my bank agreed to be among the first banks to join the MEP, and I volunteered to join the Oversight Committee.”