About eanj 401k Advantage

EANJ 401k Advantage is a multiple employer plan (the “Plan”) adopted by two or more employers who are unrelated for income tax purposes but who are members of Employers Association of New Jersey (EANJ), a nonprofit trade association formed in 1916 dedicated to responsible employee relations. EANJ is the MEP Administrator and its members are eligible to participate in the MEP by adopting the Plan.

The Trustees have approved an Investment Policy and have retained BCG Securities, Inc. as Investment Advisors under ERISA section 3(38) and have established fees.

The Trustees have appointed Benefit Consultant Group, Inc. to provide administrative services under ERISA section 3(16) and have established fees.

The Custodian of the Plan is Mid-Atlantic Trust Company.

The Plan’s legal counsel is the Rosenbaum Law Firm P.C.

Some of the benefits to a Participating Employer may include elimination of most plan sponsor functions, such as an annual plan audit and Form 5500 filing, and some plan fiduciary functions, such as choosing which investment options will be available to plan participants. Generally, MEP adopting employers no longer file a Form 5500 or maintain a fidelity bond. These functions are generally handled by the MEP plan administrator, not the adopting employer.

Participating Employers may be required to pay their proportionate share of any expenses of the Plan, including, but not limited to audit expenses.

1. 
   The need to make timely and accurate plan contributions:
   
2. 
   Plan design decisions, such as the level of match.
   
3. 
   Distribution to participants of required notices and information unless handled by the MEP plan administrator; and
   
4. 
   Communication and enrollment assistance for participants unless handled by the MEP plan sponsor.
   

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  Will existing plan features be changed?
  
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  Do the employers meet the DOL's commonality requirement? See DOL Adv. Op. 2001-4.
  
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  How much will the annual audit expense be? CPAs advise that a major cost of the plan audit arises from testing the compensation, deferrals, and other census derived compliance components of the plan’s administration. Where each employer participating in the MEP does its own payroll (or does it through its payroll service), there is no commonality of payroll, so it is doubtful that there are substantial economies to an audit for such a MEP.
  
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  Who is handling the administration work, fiduciary oversight, and plan operations?
  
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  What are the credentials and MEP expertise of the various parties involved with the MEP? The adopting employer has the duty to prudently select and monitor.
  
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  How long have the parties to the MEP been involved with MEPs?
  
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  Is there an ERISA attorney advising the MEP and maintaining the plan document? If so, what is their background specific to MEPs?
  
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  How are all of the parties paid? Are there potential conflicts of interest or prohibited transactions?
  
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  f you wish to retain your current adviser within an MEP arrangement, will the Administrator accept the adopter’s adviser?
  
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  Is there a proper separation of the roles and ownership structure of the MEP‟s plan administrator, independent fiduciary and contracted service providers?
  
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  What measures does the MEP take to terminate noncompliant adopting employers that could negatively affect the entire MEP? Does the Plan Document allow them to unilaterally terminate adopters with compliance problems?