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Friday, 19 July 2019 07:06

SCRS Webinar Explains New MEP Retirement Plan

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She cited an AARP study that claimed, “Workers are 15 times more likely to save for retirement if a plan is offered through work.”

 

The SCRS Multiple Employer Retirement Plan (MEP) boasts low expenses and easy compliance for the professionally managed, tax-deferred plan that can be tailored to each employer with options such as employer matching, eligibility period, vesting schedule, Roth deferrals and more. Explaining how the SCRS MEP solution works, Pickel stated, “SCRS members join together to form one retirement plan; there’s strength in numbers. Having one plan document for the entire group simplifies the plan management and eliminates the need for much of the paperwork and responsibilities.”

 

“You adopt, we manage,” Pickel continued. “TPC oversees the plan compliance and adherence to selected plan provisions. Select fiduciary responsibilities are outsourced to us so that means less worry for you. Also, the time and effort on the part of the plan administrator are drastically reduced which allows you more time to focus on your business.”

 

Broaddus then spoke about what sets the SCRS MEP apart from other options. While he and the SCRS Board were organizing this benefit offering, he found that the biggest challenge to overcome for many shop owners who already have a 401K plan for their business is the idea of telling their current advisor they are considering a different plan, but he reminded them, “As an employer, you’re required to do what’s in the best interest of your business and your employees.”

 

The overall benefits of the plan include the investing power of members joining as one plan, which makes the plan less expensive with low admin costs, while maintaining expert administration and an approved alternative to state-run plans. For the owner, the plan provides fiduciary support and is customizable, flexible, easy to implement and compliant. It’s also easy for employees to sign up and they’ll have access to individual investment advice; as a side benefit, Broaddus expressed, “Employer support builds employee loyalty.”

 

Providing an example of how the plan works using compound interest, Broaddus demonstrated that the SCRS MEP advantage will generate over $150,000 more in retirement savings over a 30-year period.