Pooled Employer Plan (PEP)

A Simple, Comprehensive 401(k) Solution

A PEP is a simplified retirement solution for businesses that allows multiple employers to “pool” their resources together into one retirement plan to achieve benefits that used to be only available to larger companies. This solution minimizes the time sponsors and advisors spend managing a 401(k) plan.

Benefits of a PEP

Annual Audit Time and Cost Reduced

If the plan is large enough to require an audit, the PEP removes the annual independent audit requirement and cost for the plan sponsor. The Pooled Plan Provider (PPP) handles much of the administrative work associated with the audit.

Reduced Fiduciary Risk and Responsibility

A properly designed PEP will significantly reduce the employer’s fiduciary risk and responsibility. The PEP removes as much of the fiduciary liability of operating a retirement plan as is allowed by law away from the adopting employer.

Reduced Administrative Responsibility

Adopting employers are relieved of the day-to-day burden of administering the retirement plan. That job becomes the responsibility of the PPP.

Large Plan Features

Pooling resources into a common PEP allows multiple employers to experience the administrative and design features sometimes only available to larger retirement plans.

Simplify Your Retirement Plan Management with a Pooled Employer Plan

Simplify your retirement plan management with a PEP PDF graphic

With a traditional 401(k) plan, the plan sponsor carries most of the administrative and fiduciary responsibility. A PEP takes much of that off the plan sponsor’s plate. Download our Plan Sponsor Responsibility Checklist to see the difference. Also need an image of the slipsheet.

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