WHAT’S YOUR PEP STRATEGY?
Four Strategies Every Advisor Should Leverage in Today’s Evolving PEP Market
Pooled Employer Plans (PEPs) have moved beyond their startup-focused beginnings and are now a serious player in the retirement plan space. For financial advisors, this creates a timely opportunity — but only if you understand where the market is headed.
Here are four observations shaping the next phase of PEP growth — and how you can use them to win business.
01 | The Game Has Changed
LARGER PLAN SPONSORS ARE BUYING IN
Our Observation
PEPs may have launched with small employers in mind, but that’s not where today’s traction is. Mid-sized, audit-level plans (100+ participants) are now actively exploring PEPs to eliminate the burden of the annual plan audit, offload fiduciary responsibility and streamline plan oversight
Advisor Opportunity
Shift your focus. Mid-market plans are the new sweet spot — and they expect a more sophisticated pitch. Position PEPs as a strategic upgrade, not just a simplified alternative.
02 | We Understand the Game
AUDITS ARE INEVITABLE
Our Observation
As PEPs grow, so does regulatory attention. The DOL and IRS are watching, and PEPs should expect closer scrutiny going forward. That means clean compliance, clear documentation and operational excellence from day one.
Advisor Opportunity
Use audit preparedness as a differentiator. Show clients how you partner with providers that take compliance seriously — and protect them from future surprises.
03 | Don't Be Left Holding the Pieces
THE RIGHT PEP PARTNER DELIVERS A SEAMLESS SOLUTION
Our Observation
PEPs only succeed when key players — advisors, TPAs, recordkeepers, fiduciaries — operate in lockstep. Misalignment creates service gaps, confusion and frustration for plan sponsors. While many PEPs still rely on loosely connected partnerships, some PPPs (Pooled Plan Providers) are built to actively coordinate these providers, keeping the entire ecosystem aligned and accountable.
Advisor Opportunity
Don’t just “sell” a PEP — sell the infrastructure behind it. Partner with a PPP that manages a fully integrated team of providers who collaborate, communicate and price with transparency. That’s what drives real value for clients.
04 | Play the Long Game
CONSOLIDATION IS COMING AND SO IS RISK
Our Observation
The PEP space is crowded and still evolving. Expect weaker players to exit as compliance costs rise and demand for quality increases. Not all PEPs and PPPs are built to last.
Advisor Opportunity
Help your clients future-proof their plan. Choose PEPs from PPPs with proven infrastructure, strong cybersecurity practices and a commitment to long-term service delivery — not just low fees.
MAKE EVERY MOVE COUNT
Bottom Line For Advisors
PEPs aren’t just “an option” anymore — they’re becoming a strategic lever for plan sponsors looking to simplify retirement plan management. As the space matures, advisors who understand the nuances will stand out. Be the expert, build the right partnerships and bring clarity to a market that’s still finding its footing.
Let’s Talk.
Connect with one of our PEP experts about how we can help you get started.
Mike Burke
