Pooled Employer Plans (2024)

FAQs

Pooled Employer Plans? ›

What is a pooled employer plan? A PEP is a defined contribution plan, such as a 401(k), in which multiple employers can participate. When employers join a PEP, they delegate their named fiduciary role to a third-party pooled plan provider (PPP).

Because PEPs pool assets from multiple employers, the plan sponsor may only offer a limited number of investment options to participants. This can limit the ability of participants to tailor their investment portfolios to their individual needs and risk tolerance.

The SECURE Act stipulates pooled plan providers (PPPs) will serve as a PEP's named fiduciary, plan administrator and perform all associated administrative duties. PPPs are responsible for all oversight of the plan.

PEPs allow unrelated companies to offer a retirement plan

A PEP expands on what an MEP allows by permitting employers without a common nexus to band together to offer their employees a retirement plan. It offers virtually the same administrative simplicity and cost benefits as a MEP, but it has some differences.

Pooled funds are funds in a portfolio from many individual investors that are aggregated for the purposes of investment. Mutual funds, hedge funds, exchange traded funds, pension funds, and unit investment trusts are all examples of professionally managed pooled funds.

Fiduciary oversight of a PEP generally falls on the PPP. However, employers must still take care in choosing a pooled plan provider to ensure it provides proficient plan administration and investment management and acts in the best interests of the plan participants.

In December 2019, the Setting Every Community Up for Retirement Enhancement (SECURE) Act was signed into law, enabling the introduction of today's pooled employer plans beginning in 2021.

The Internal Revenue Service and Department of Labor clarified that PEPs with 100 participants or more are subject to audit, rather than the 1,000-participant threshold that we thought was the interpretation in the SECURE Act., which first made PEPs a retirement plan option.

What is the largest multiple employer plan? ›

Pentegra is one of the largest and most experienced Multiple Employer Plan (MEP) providers in the nation.

The SECURE Act created a new type of MEP called a Pooled Employer Plan (PEP). PEPs allow employers that don't share a commonality of ownership or industry to participate in a retirement plan that is independently sponsored by a pooled plan provider.

Managing multiple devices on individual plans can be a logistical nightmare. Pooled data plans simplify this process by consolidating all devices under a single account, making it easier to monitor usage, manage costs, and adjust allocations as needed.

A Domestic PEP is an individual who holds or has held a significant public position within their own country. This could include high-ranking government officials, politicians, or individuals with influence over public policies on a national level.

Multiple Employer Plans (MEPS) have been available for many years. MEPs are sponsored by a third party, known as the MEP Sponsor. That sponsor, typically an association or professional employer organization (PEO), takes on the responsibility and liability for running the plan.

PIP = HIV Post-Exposure Prophylaxis (PEP)-in-Pocket.

Not insuring is risky, so pooling with others helps spread the risk. Typically, insurers combine groups with favorable experience together with groups with adverse experience. The result is the high and low risk help offset each other. This moderates premiums for all groups.

The primary advantage of pooled data plans is their cost-effectiveness. By aggregating data across multiple devices, businesses can significantly reduce the per-unit cost of data.

Multinational pooling is a method global companies use to manage the risk of their employee benefit plans throughout the world. The different employee benefit programs of a multinational company are combined to form an international pool.

Pooled procurement increases purchasing power because procurement costs are spread over a greater volume and variety of products. It may also increase efficiency through the sharing of resources and streamlining of procurement processes.