5 Key PEP Insights from Fred Reish and Jeff Atwell
PEPs streamline retirement plan administration by shifting fiduciary and administrative responsibilities to expert providers — reducing risk, saving time and lowering costs.
Hear how advisors and TPAs can grow their PEP business.
Meet The Experts
Fred Reish
ERISA Attorney
Jeff Atwell
SVP of Fiduciary Services at AmericanTCS
Insight 1: Why the Right Pooled Plan Provider Matters
Selecting the right Pooled Plan Provider (PPP) isn’t just a detail — it’s the linchpin of a successful PEP. The PPP coordinates all critical components needed to make the plan work, from administration to compliance to oversight. With the right PPP, advisors and TPAs remain at the center of the client relationship, while the PPP shoulders total plan governance as the prudent expert. This partnership streamlines operations, mitigates fiduciary risk and reduces administrative burden — ultimately saving time, cutting costs and giving clients confidence that their retirement plan is in expert hands. The right PPP is a strategic advantage reducing risk and freeing up time for plan sponsors and advisors alike.
Insight 2: Growth Opportunities for Advisors & TPAs
How Advisors and TPAs Thrive in PEPs
PEPs aren’t about replacing advisors or TPAs — they’re about collaboration. The best PEPs are built with flexible structures that embrace advisor and TPA involvement.
In PEPs, advisors remain the trusted connection between the employer and the PEP. They provide education, plan reviews and investment explanations — and continue to charge for their ongoing consulting or wealth management work. This leaves many advisors in the wealth management space poised to capture rollovers just like when working with traditional single employer plans. Because the governance shifts to the PPP and 3(38) fiduciaries, advisors are freed to focus on client strategy and outcomes.
For TPAs, each PEP is a consulting opportunity to define their role and demonstrate value. Depending on the PEP structure, TPAs can play an active consulting role, using their expertise to help employers navigate plan design, compliance nuances and transitions.
Insight 3: More Employers Are Choosing PEPs
The Audience for PEPs has Expanded Beyond Small Startup Plans
PEPs transfer most fiduciary liability to experts, while also reducing time spent and audit responsibilities for the plan sponsor. PEPs now include more than 50,000 participating employers, underscoring their strong fit for employers of all sizes and for both new and existing retirement plans. Still, it’s important that providers guide employers to the appropriate PEP and recognize that some plans should continue to operate standalone.
Insight 4: PEPs Reduce Fiduciary Risk for Employers
Many Employers Don’t Recognize the Scope of Responsibility and Risk Until Issues Arise
Within a PEP structure, the employer needs to prudently select and monitor their PPP, making careful due diligence essential. However, once the right PPP is in place, much of the governance burden shifts to experienced fiduciaries who provide consistent, professional oversight. Centralizing governance also enables advisors to serve more plans efficiently without increasing their workloads, while PPP-driven benchmarking and thorough documentation help ensure fair fees and ongoing compliance.
Insight 5: Growing DOL Scrutiny is Raising the Stakes
New Rules and Tighter Oversight Are on the Way
The Department of Labor (DOL) is signaling a more stringent approach to oversight, tightening guidance on conflicts of interest and fiduciary duties. Conflicts of interest are under sharper scrutiny, emphasizing that fiduciary independence will be closely evaluated by the DOL moving forward. Organizations should prepare for heightened enforcement and adapt their governance practices accordingly.
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