Glossary — Benefits

Multiple Employer Plan (MEP)

A retirement plan that covers employees of more than one unrelated employer — common in PEO 401(k) arrangements.

Definition

An MEP is a single retirement plan covering employees of multiple unrelated employers. PEO 401(k) plans are almost always MEPs — one master plan covering all PEO clients' employees, with the PEO acting as plan sponsor and administrator.

MEPs reduce per-participant administrative costs and shift fiduciary responsibility to the plan sponsor (the PEO). The 2019 SECURE Act expanded MEP availability through Pooled Employer Plans (PEPs).

Common questions about Multiple Employer Plan (MEP)

A retirement plan that covers employees of more than one unrelated employer — common in PEO 401(k) arrangements.

An MEP is a single retirement plan covering employees of multiple unrelated employers.

Most PEO buying decisions touch several related concepts at once. Multiple Employer Plan (MEP) typically comes up alongside the other terms in this category. Closely related terms include 401(k) plan, ERISA fiduciary.

Browse the full PEO glossary

This is one entry from our PEO glossary covering payroll, benefits, workers comp, HR compliance, and PEO mechanics. Browse all terms.

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