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Pooled Employer Plans

A Pooled Employer Plan, also known as a PEP, is a collective retirement plan that provides several benefits to the employees and employers of two or more unrelated companies. In short, these different companies are able to pool their retirement plans together, often being 401(k)s, into one plan called a PEP. The benefits of doing so are many. PEPs:

  • Eliminate the need for the individual company to file their own annual 5500

  • Eliminate the need for the individual company to complete an annual independent audit; a requirement when a company hits 120 eligible participants on the first day of the plan year

  • Eliminate Plan Trustees and many other fiduciary duties

  • Eliminate Plan Document/Reinstatement fees

  • Provide economies of scale by combining assets with other adopting employers under one plan

While the SECURE Act won’t allow PEPs to begin until January 1st of 2021, we are able to see if being a part of a PEP would benefit your company today.

For more information regarding Pooled Employer Plans, and to see if your company would benefit from a PEP, please contact us.