{"id":4459,"date":"2020-01-20T18:12:43","date_gmt":"2020-01-20T23:12:43","guid":{"rendered":"http:\/\/therosenbaumlawfirm.com\/blog\/?p=4459"},"modified":"2020-01-20T18:12:43","modified_gmt":"2020-01-20T23:12:43","slug":"per-head-charges-are-eye-popping-in-mep-case","status":"publish","type":"post","link":"https:\/\/therosenbaumlawfirm.com\/blog\/?p=4459","title":{"rendered":"Per head charges are eye popping in MEP case"},"content":{"rendered":"<p><span class=\"s2\"><span class=\"bumpedFont15\">National Rural Electric Cooperative Association (NRECA) is a national service organization that represents more than 1,000 rural electric cooperatives around the United States. NRECA sponsors a 401(k) multiple employer plan (MEP) and is a target of a class-action lawsuit. <\/span><\/span><\/p>\n<p><span class=\"s2\"><span class=\"bumpedFont15\">The court made a big decision and expectations should be high for a settlement. U.S. District Judge Liam O\u2019Grady of the Eastern District of Virginia has found that the complaint alleging prohibited transactions against fiduciaries of the plan \u201ccontains sufficient well-pleaded facts to survive a motion to dismiss.\u201d<\/span><\/span><\/p>\n<p><span class=\"s2\"><span class=\"bumpedFont15\">I read the complaint and I find it troubling. The whole purpose of a MEP is low cost. The plan has almost 70,000 participants and $10 billion in assets. The complaint alleges that the plan\u2019s administrative costs have increased each year since 2013, and the 2017 rate of $404 per participant is a 50% surge from the 2013 rate. That is eye-popping and a review of the Form 5500 shows a lot of providers involved for one single plan.<\/span><\/span><\/p>\n<p><span class='st_sharethis' st_title='{title}' st_url='{url}' displayText='ShareThis'><\/span><\/p>","protected":false},"excerpt":{"rendered":"<p>National Rural Electric Cooperative Association (NRECA) is a national service organization that represents more than 1,000 rural electric cooperatives around the United States. NRECA sponsors a 401(k) multiple employer plan (MEP) and is a target of a class-action lawsuit. The &hellip; <a href=\"https:\/\/therosenbaumlawfirm.com\/blog\/?p=4459\">Continue reading <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>\n<p><span class='st_sharethis' st_title='{title}' st_url='{url}' displayText='ShareThis'><\/span><\/p>","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/therosenbaumlawfirm.com\/blog\/index.php?rest_route=\/wp\/v2\/posts\/4459"}],"collection":[{"href":"https:\/\/therosenbaumlawfirm.com\/blog\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/therosenbaumlawfirm.com\/blog\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/therosenbaumlawfirm.com\/blog\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/therosenbaumlawfirm.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=4459"}],"version-history":[{"count":1,"href":"https:\/\/therosenbaumlawfirm.com\/blog\/index.php?rest_route=\/wp\/v2\/posts\/4459\/revisions"}],"predecessor-version":[{"id":4460,"href":"https:\/\/therosenbaumlawfirm.com\/blog\/index.php?rest_route=\/wp\/v2\/posts\/4459\/revisions\/4460"}],"wp:attachment":[{"href":"https:\/\/therosenbaumlawfirm.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4459"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/therosenbaumlawfirm.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=4459"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/therosenbaumlawfirm.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4459"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}