What is a Pooled Employer Plan?
A Pooled Employer Plan (PEP) is a type of defined contribution retirement plan introduced by the SECURE Act, available since 2021. PEPs allow unrelated employers of any size to participate in a single retirement plan, helping to reduce administrative burdens, lower costs, and minimize fiduciary risk.
A PEP (Pooled Employer Plan) allows multiple unrelated employers to join a single retirement plan, offering cost savings and administrative efficiencies while maintaining flexibility in plan design.
In a traditional 401(k), the employer acts as the sole plan sponsor, managing investments, administration, and fiduciary responsibilities. With a PEP, most of these duties shift to a Pooled Plan Provider (PPP), reducing the employer’s fiduciary risk, administrative burden, and costs through economies of scale.
Things you should know about the PEP model introduced by the Secure Act 2.0.
It seems to be one of the fastest-growing solutions, potentially reducing your HR-retirement plan tasks and easing the burden on the annual 5500 signatory.
Imagine having your payroll integrated with one of our 270 connections, with no extra steps beyond your regular payroll process. We partner with one of the largest record-keepers in the US, providing seamless connections and three fiduciaries taking responsibility, even signing the annual 5500 filing.
This isn’t a dream—it’s a reality for many companies in our 401(k) Maneuver PEP. Royal Fund Management, an SEC-Registered Investment Advisory Firm, offers daily fiduciary advice and quarterly active management. With over 80 offices, a billion dollars under management, and 11,000+ accounts, we’re here to help.
Take a look at what we offer. We can provide a free benchmark of your current plan vs. our 401(k) Maneuver PEP. Think of it as having the best house in the best neighborhood at the best price. Just ask to see it—we think you’ll be impressed.
northpointfinancial.com 