The MEP to PEP conversion issue

I have always been saying the most successful Pooled Employer Plans (PEPs) in the beginning, were going to be multiple employer plans (MEPs) that converted.

There are many reasons why a MEP would like to convert to a PEP. The audit savings and the use of a Pooled Plan Provider come to mind. Obviously, eliminating the commonality of MEPs between adopting employers is the number one reason I like PEPs. The problem with the conversion is the devil in the details. Many third-party administrators (TPAs) will also serve as Pooled Plan Provider and will insist they need to be plan sponsors as well. I don’t have to tell you that if a TPA is a plan sponsor, it’s hard to fire them.

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