New multiple employer 401(k) plan available to credit unions
MADISON, WI (April 14, 2014) – Credit unions providing a 401(k) program to 100 employees or more can save money and streamline their administrative tasks by joining the Credit Union Retirement Plan Association 401(k) Plan, a new multiple employer plan (MEP), administered by CUNA Mutual Group.
A MEP is a single plan adopted by a group of employers, which has a common interest, but does not have common ownership. By comparison, a single employer plan covers employees of one employer, or several employers that are part of the same related group of employers.
The Credit Union Retirement Plan Association 401(k) Plan became available Jan. 1. According to Paul Chong, senior vice president of CUNA Mutual Retirement Solutions, “This is the first national MEP designed exclusively for credit unions and their affiliates. When the DOL published its Advisory Opinion in 2012 on open MEPs (that they are not single ERISA plans), we worked hard to come up with a solution so credit unions could get the full benefits of a MEP, including not having to do an annual audit of their plan,” Chong said.
A MEP is ideal for employers with 100 employees or more. Advantages include:
- Elimination of annual plan audit expenses
- Reduction of employer’s fiduciary responsibility
- Elimination of annual Form 5500 filings by individual employers
“The Plan Administrator appointed by the association is responsible for the annual audit of the MEP, so credit unions can save audit costs, which typically run from $5,000 to $20,000 per year,” Chong said. “They also save staff time by not having to file the annual Form 5500 and reduce their fiduciary responsibility.”
To be a member of the association, an employer must be a member of the Credit Union National Association, Inc. (CUNA). Affiliates of CUNA members, such as wholly owned CUSOs, and credit union leagues, are also eligible to join the association. There are no association membership dues.
The plan offers an investment lineup with low-cost, index-based options. It also features CUNA Mutual Group’s RetireOnTarget® guidance system at no extra cost to all participating employers under the plan.
For more information, contact your CUNA Mutual Group sales executive at 800.356.2644.
CUNA Mutual Group was founded in 1935 by credit union pioneers, and our commitment to their vision continues today. We offer insurance and protection for credit unions, employees and members; lending solutions and marketing programs; TruStage®-branded consumer insurance products; and investment and retirement services to help our customers succeed. More information is available on the company’s website at www.cunamutual.com.
CUNA Mutual Group is the marketing name for CUNA Mutual Holding Company, a mutual insurance holding company, its subsidiaries and affiliates. Life, accident, health and annuity insurance products are issued by CMFG Life Insurance Company. Property and casualty insurance products are issued by CUMIS Insurance Society, Inc. Each insurer is solely responsible for the financial obligations under the policies and contracts it issues. Corporate headquarters are located in Madison, Wisconsin.