MULTIPLE EMPLOYER PLAN

Multiple Employer Plan Available for Chamber Members

Bakersfield Chamber Makes Major Decision: The Impacts on Retirement Savings for Members

The Greater Bakersfield Chamber, in collaboration with Moneywise Wealth Management, has opened a Multiple Employer Plan or MEP for exclusive use by members of the Greater Bakersfield Chamber. What exactly is a Multiple Employer Plan and how can it help your business? This watershed innovation in retirement planning has been in the works for some time and was brought about with small and medium-sized businesses firmly in mind. As CalSavers and other state mandated retirement plans are unveiled, it is necessary for small businesses to be able to provide a retirement plan to their employees that meets the needs of their business, not the State of California. It is in this vein that the Greater Bakersfield Chamber and Moneywise worked together and created this program. For years, the only way for businesses to provide retirement benefits for their employees was through some form of a defined benefit pension plan, or through an employee funded plan like a 401k or similar plan. These types of plans are costly and overly complex, especially for small and medium-sized businesses with few assets earmarked for retirement and in many ways, creates a barrier that prevents companies from offering this valuable benefit. It is mainly for this cost/complexity reason that many small and mediumsized local companies in Bakersfield have traditionally shied away from these types of retirement plans. Enter the Multiple Employer Plan, or MEP for short. A MEP is a 401k style retirement plan that, until recently, has been overlooked by most companies. Recent changes in IRS and DOL regulations have allowed for associations such as Chambers of Commerce to offer a truly valuable benefit effectively and efficiently for their members through use of a MEP. Essentially, a MEP is just like a 401k with all the same perks of potential matching contributions, profit sharing, ROTH contributions, and Safe Harbor provisions, etc. The best part is that a properly administered MEP can spread the plan costs among many participating businesses and potentially lower the barriers to retirement plan entry. Secondly, most of the administrative headaches and complexity in managing the plan can be greatly reduced

Justin Leland by choosing the right partners to take on much of that responsibility. The Greater Bakersfield Chamber, along with Moneywise Wealth Management, has built an administrative team to do just that. Companies that can most benefit from the use of a MEP through the Chamber of Commerce are small and mediumsized businesses that want to provide a retirement plan as a way to retain and empower their employees for retirement but are afraid that the costs and administration of such a plan may reduce the efficiency of their business. Essentially, small and medium-sized businesses that are members of the Chamber can provide a low-cost, easy to administer, highly customizable retirement plan to their employees and be exempt from the onslaught of CalSavers. Bakersfield has a long history of being on the forefront of business and industry innovation. We have grown from a small farming outpost town into a bustling hub for the energy, oil, agriculture, industrial, transportation, manufacturing, service and logistics industries while still keeping our small-town ambience. We have been, and still are, an incubator for small businesses in countless industries and classifications. It is in this characteristic, of being a progressive and business minded community, that we as a team and as a Chamber, built this valuable retirement innovation for our members and for the business community in Bakersfield. If you would like more information on this amazing benefit or have questions on whether a MEP makes sense for your business, please contact Justin Leland at Moneywise Wealth Management at justin@moneywiseguys.com or 661-847-1000.

– Justin Leland, CFP®, AIF®

Justin Leland, CFP®, AIF® is the Director of Business Services and a Financial Advisor at Moneywise Wealth Management. He is also a host of the Moneywise Guys radio program on KERN 1180 AM and 96.1 FM weekdays noon to 1 p.m. His email is justin@moneywiseguys.com and website is www.MoneywiseGuys.com. Securities offered through SCF Securities, Inc., Member FINRA/ SIPC. Investment Advisory Services offered through: SCF Investment Advisors, Inc. Corporate Office: 155 E. Shaw Ave. #102 Fresno, CA. 93710 800-955-2517. These are Leland's opinions, not necessarily those of SCF Securities, Inc. or any SCF-related entity. SCF Securities, Inc. and Moneywise Wealth Management are not affiliated.