401k Collective PEP
A Pooled Employer Plan (PEP) may be the right solution for your organization’s 401(k). Keep reading or watch the 90-second video above to learn more.
Key Takeaways for Pooled Employer Plans aka PEPs:
PEPs are designed for both small and large companies.
This is a cost-effective and efficient way to provide your employees with a retirement savings plan.
PEPs are an innovative solution that combine the benefits of a traditional retirement plan with the simplicity of a pooled investment structure.
Within a PEP, multiple employers can join together to create one large retirement plan. This pooling of resources allows for economies of scale - resulting in lower fees and administrative costs for all participants. Employers can also reduce their fiduciary responsibilities, streamline plan administration, and offer their employees access to a wider range of investment options.
One of the key advantages of a PEP is the flexibility it offers. Employers can still customize the plan to meet the specific needs of their workforce - this could mean offering automatic enrollment features, an employer match, or something else unique and beneficial to your participant population.
An Alternative to your State Mandate
The 401k Collective PEP is an independent offering to your employees, as opposed to a mandated state-sponsored retirement savings plan that may soon be regulated. For example, Minnesota Secure Choice Retirement Program is expected to launch no earlier than January 1, 2025, and will be rolled out in phases over two years.
What’s one thing to remember when considering a PEP?
A Pooled Employer Plan is a smart and cost-effective solution for retirement plan sponsors looking to provide their employees with a top-tier retirement savings plan while simultaneously reducing their fiduciary liability.
Do you want to learn more about the 401k Collective PEP?
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