Pooled Employer Plans
A Pooled Employer Plan cuts risk, avoids audit fees & saves time!
Pooled Employer Plans
A Pooled Employer Plan cuts risk, avoids audit fees & saves time!
A Pooled Employer Plan cuts risk, avoids audit fees & saves time!
A Pooled Employer Plan cuts risk, avoids audit fees & saves time!
A Pooled Employer Plan (PEP) is a type of 401(k) that allows multiple, unrelated businesses to participate in a single retirement plan.
Instead of each company running its own plan separately, everything is brought together under one structure that’s managed by a pooled plan provider (PPP). The PPP takes on the responsibility for things like plan administration and investment oversight, which helps reduce the workload and risk for the employers involved.
For business owners, that means fewer moving parts to manage and more time to focus on running the company.
The pooled plan provider also handles selecting and overseeing the key partners that support the plan—such as recordkeepers, custodians, investment managers, and other service providers. Having this centralized approach helps keep things consistent, efficient, and easier to manage overall.
PEPs have become a practical alternative to traditional 401(k) plans, especially for businesses that want to offer a strong retirement benefit without taking on all the responsibility that usually comes with it. By bringing multiple employers into one plan, there’s also the potential for better pricing and access to more streamlined services.
Pooled Employer Plans were introduced under the SECURE Act, which took effect in 2021.
Before that, businesses could only participate in shared retirement plans if they had something in common—like being in the same industry or location. The SECURE Act removed that limitation, making it possible for almost any employer in the U.S. to join a pooled plan.
It also added an important layer of protection. If one employer in the plan has an issue, the others aren’t held responsible—something that used to be a concern under older plan structures.
More recently, the SECURE 2.0 Act of 2022 built on that foundation by encouraging higher participation, expanding access, and making it easier for employees to save for retirement through features like automation and increased flexibility.
Better outcomes for employees
A PEP can help employees get more out of their retirement plan, often with lower costs and access to a well-structured investment lineup. By pooling multiple employers together, plans can benefit from greater scale and efficiency.
Less to manage
Running a 401(k) comes with a lot of moving parts. A PEP simplifies that by shifting much of the administrative work to experienced professionals, giving business owners and leadership teams more time to focus on their core priorities.
Lower risk
With a pooled plan, key responsibilities—like administration and investment oversight—are handled by a pooled plan provider (PPP). This helps reduce the level of risk and responsibility carried by the employer.
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