CBAI 401(k) MEP

There are many benefits your business will derive from adopting a retirement plan through the CBAI 401(k) MEP, including:

• Potential cost savings from institutional investments, economies of scale, and possible reduction of plan audit costs for larger employers.
• Reduced fiduciary risk by outsourcing the investment selection 3(38)* and administration 3(16)** of the plan.
• Elimination of individual employer plan 5500 filings.
• Ability to customize your plan provisions.
• Team of experts managing your plan.

A major consideration that is critical for your bank is the amount of administration hours that a retirement plan requires, and the administrative relief that may occur as a result of participating in the CBAI 401(k) MEP.

Underestimating the administration required to properly operate a 401(k) plan is a common mistake. By participating in the MEP, Adopting Employers will be able to outsource a significant number of tasks including, but not limited to:

• Select, monitor, and update investment menu, including notice to participants.
• Comply with ERISA Section 404(c), including notices to participants, prospectus delivery, and copies of all changes.
• Distribute required information to employees, including enrollment kits, SPD, 404(c) info, QDIA, 404a(5) fee information.
• Annual nondiscrimination testing.
• Employee eligibility tracking.
• Contribution limit tracking.
• Distribution requests for terminated Employees.
• Distribution of participant statements.
• Loan processing.
• Compliance and legislative supervision.
• Form 5500 filing.
• And others.

• Dedicated plan support team
• Professional, top quality participant website, toll-free call center, quarterly statements, and enrollment information
• Investment education and enrollment presentations by a local advisor, if elected
• Professional team of retirement plan experts (including ERISA attorneys, investment fiduciaries, and retirement plan experts) to assist with plan design, compliance questions, etc.

Adopting Employers must still handle payroll, provide timely and accurate data, notify the plan administrator of employee changes, and make timely contributions.

However, under the CBAI 401(k) MEP, all of the principal fiduciary roles — named fiduciary, trustee, administrator, and investment manager — have been delegated to professionals, so many of your responsibilities and liabilities associated with these roles are outsourced.