Thanks to renewed interest in. multiple employer plans (MEPs), I will always get the phone call from someone interested in setting up a multiple employer plan. That person might be an advisor, third party administrator (TPA), or even a plan sponsor.
On paper, we all would like to start our own MEP. The problem is most MEPs fail because they never get the size they need in order to justify it, in terms of costs. Nothing worse than a MEP that has little in assets, but an audit to pay for. While everyone thinks their MEP is the end all to be all and everyone would adopt it, the sales process is slow. After working on so many MEPs, only a few are successful and the ones that were successful took many years to achieve a level of success. It doesn’t mean that people won’t try a MEP.