How to Help Clients Reduce Their Plan Duties by More Than Half

A Pooled Employer Plan, or PEP, can reduce the time and resources that an employer spends on plan responsibilities. Research shows that 83% of employers with a PEP are satisfied with the experience, citing simplified and streamlined plan management as the top benefit.¹

Here’s an easy way to explain this to clients who are considering a PEP. Show them this list and ask whether they’d prefer to be on the hook for 21 plan responsibilities or only eight.

* With support from The Standard

Employers with a PEP have fewer responsibilities because most administrative and fiduciary duties are managed by the pooled plan provider, or PPP. As a PPP, The Standard provides recordkeeping administration and fiduciary management of PEPs. 

PEPs come with other advantages for employers, including:

• Lower administrative and fiduciary risk
• Potentially lower costs associated with plan administration and audits
• Access to a top-notch recordkeeping platform 

PEPs pool resources — assets and participants — to achieve economies of scale. The result is lower administrative and investment fees for participants compared with many stand-alone plans. PEPs also may provide access to participant tools, resources and fund options a plan might not otherwise afford. Another way that economies of scale can benefit a plan is that PEPs can potentially offer a greater variety of investment options. These include target date funds, index funds and actively managed funds, which allows participants to better tailor their investment strategy.

This comparison is a great refresher for clients who have a PEP and a persuasive exercise for those who don’t. Unlock the Power of PEPs to learn more or contact a local consultant.