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Multiple Employer Plans & Pooled Employer Plans

NWPS has long experience serving Multiple Employer defined contribution plans including in the dental, technology, construction and education industries. In a MEP, companies that have a nexus of association may participate in a single 401(k) plan sponsored by the association. MEPs enable small employers to enjoy the features, technology, costs and investments typically only available to much larger plans by pooling their purchasing power.


Pooled Employer Plans are similar to Multiple Employer Plans with one critical difference. They do not require a nexus of association among the adopting employers. PEPs were approved in the SECURE Act passed in December 2019 and effective January 1, 2021. While there are still issues to be clarified regarding PEP structure, many providers are preparing to launch Pooled Employer Plans in 2021.


MEPs and PEPs present recordkeeping and administration complexity for the following reasons:

  1. There can be a large number of adopting employers.
  2. Each employer can select different plan provisions from the adoption agreement.
  3. Reporting is required at the overall plan level and for each adopting employer.
  4. Complex compliance testing requirements.
  5. Complex organizational structure for the plans.

NWPS has the technology and experience to efficiently and effectively serve MEPs and PEPs and in addition to our current MEP business, we are in discussions with a number of partners to launch PEPs in 2021.