Pooled Employer Plan
Focus on what matters most to you: your business and your employees.
Introduced in the SECURE Act of 2019, Pooled Employer Plans (PEP) allow different businesses to participate in one retirement plan, making it more cost-effective. A PEP is a new type of 401(k) plan for employers. Even though businesses share the plan, each company can still have its own rules and do separate compliance testing at the end of the year, just like they would with their own 401(k) plan. A pooled plan provider takes care of all administrative duties so you can focus on what matters most to you: your business and your employees.
PEP BENEFITS
Cost Efficiency and Savings
Cost efficiency and savings. By pooling resources with other employers, you can leverage economies of scale to reduce costs and gain additional benefits and services.
Cost savings on audits. Audits are conducted at the PEP level, eliminating the need for individual employer audits, which can be costly for large plans.
Shared costs. Pooling resources with other employers helps share costs, potentially lowering overall expenses and increasing the services for the plan.
Administrative Support
Reduced administrative burden. Administrative duties are outsourced to the pooled plan provider, who manages tasks such as:
- Determining eligibility and distributing required materials
- Approving distributions and loans
- Verification of payroll contribution deposit timing
- Distributing annual participant notices
- Conducting termination small balance force-out distributions
- Signing plan documents and filing the Form 5500 for the PEP
Fiduciary Support and Risk Reduction
Fiduciary support. A 3(16) plan administrator and a 3(38) investment fiduciary are appointed to manage plan day-to-day work and investment decisions, providing comprehensive fiduciary coverage.
Additional fiduciary services. Built-in, cost-efficient fiduciary services provide higher levels of oversight and coverage than single plans.
Risk reduction for employers. The pooled plan provider acts as the plan sponsor, along with a 3(16) plan administrator and a 3(38) investment fiduciary, reducing your risk in day-to-day administration and investment management.
Dedicated plan representative. You’ll have a dedicated plan representative to offer personalized support to you and your employees.
Comparisons
A PEP minimizes your administrative tasks, allowing you to concentrate on your core business activities while transferring the responsibilities and liabilities of plan management to an external fiduciary.
Is Your Company an Ideal Candidate for a PEP?
If you are looking for any of the following, you should talk with an RKL advisor to see if a PEP is right for your business.
Why RKL Private Wealth?
At RKL Private Wealth, we are dedicated to delivering exceptional service and innovative strategies that empower you and your employees to plan effectively for the future. Our Pooled Employer Plan stands out with its seamless integration into most web-based payroll systems, simplifying payroll management. We offer three levels of plan design flexibility, allowing you to customize the plan to meet your specific business needs.
With a dedicated RKL Private Wealth representative and comprehensive support on the record-keeper side, we are committed to assisting both you and your employees in maximizing your retirement savings. Experience the difference with RKL Private Wealth, where your financial future is our priority.
