With the passage of the SECURE Act in late 2019, plan sponsors have another option for providing 401(k) benefits to their employees. Pooled Employer Plans (PEPs) can have huge advantages in time and money for many companies.

These benefits include items such as:

• Potential cost savings
• Reduced work for the plan sponsor
• Better investment choices
• Better participant experience
• Reduced risk for employers and fiduciaries.

Given these advantages, and the fact that these advantages should increase in value as PEPs grow, we believe that many if not all plan sponsors should evaluate the PEP marketplace. We’ve been helping plan sponsors assess the PEP marketplace to decide if a PEP is right for them.