The traditional approach for a chamber or business association to offer a 401(k) benefit to their members is through a Multiple Employer Plan 401(k) (MEP). Unfortunately, the costs, fiduciary liability and hassle of offering an MEP make it unfeasible for most organizations. While MEPs have a place in business, they aren’t a good option for most small to medium sized businesses. The costs to the chamber or association to offer this benefit and the cost to the businesses that take part in an MEP are simply higher than they need to be. 401GO uses automation and efficiency to make plans affordable and accessible for businesses of all sizes.
Chambers and their business members know what is best for their communities. By staying at the forefront and offering this valuable benefit, your chamber and its members can stay ahead of increasing legislation that is requiring businesses to offer some form of retirement plan. Many states and municipalities already require businesses to offer a 401(k) or some equivalent. Some states are setting up their own state-wide plan but so far, the end cost to the business and their employees for these state-managed plans are too high and the compliance and regulations associated with these plans are burdensome to small businesses. A plan from 401GO likely costs much less, is easier for the business to manage and is far better for the business, its employees and for the Chamber offering that plan.
Chambers and business associations play a vital role in maximizing the positive economic impact of their business members. We also understand the amount of work and energy, the volunteer hours and the real desire to provide as much value to chamber members as possible. With 401GO, our approach is a collaborative one where we provide dual branding, customized sign-up portals and administration to help improve the visibility of the chambers work. We will also assist the chamber in providing education to the chamber members so they can determine if a 401(k) plan is a good fit for their business. Lastly, we compensate chambers with a residual monthly referral fee that the chamber can use to grow their positive influence within their communities.
Here is an article that provides more information about how a 401(k) Syndicate works with a chamber of commerce: Why a 401(k) Syndicate is the best for a Chamber of Commerce.