Pooled Employer Plan (PEP)

A Simple, Comprehensive 401(k) Solution

A PEP is a simplified retirement solution for businesses that allow 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.

What Are The Benefits?

Reduced Fiduciary Risk & Responsibility

A properly designed PEP will significantly reduce the adopting 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 sponsoring organization.

Large Plan Features Available to Smaller Plans

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

Annual Audit Expense Eliminated

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 PPP handles much of the administrative work associated with the audit.

Potential Cost Savings

Economies of scale resulting from more employers joining the PEP can often lead to administrative cost savings.

What’s Included?

  Pooled Employer Plan Traditional 401(k)
Comprehensive Retirement Plan Governance
Remove Responsibility to Sign and File 5500
Eliminate Plan Document Maintenance
Customized Plan Design
Considerably Reduce Employer Responsibility
Approve and Process Loans/Distributions/QDROs
Remove Liability for Fraudulent Transactions
Perform Annual Compliance Assessment and Fee Benchmarking
Eliminate Individual Plan Audit (if applicable)
Integrate Payroll