How to Spot a Plan That Could be Perfect for a PEP

Not every client is a fit for a pooled employer plan, or PEP. But skipping the conversation can mean a missed opportunity to deliver ongoing value. 

Not sure where to start? In a recent independent survey,¹ advisors who are successfully selling PEPs revealed what they look for in a strong candidate. 

The list includes:

• Fiduciaries who are interested in better participant services, enhanced investment choices and lower costs compared to what they could negotiate on their own.
• Employers who are interested in a higher level of service and expertise without significant increase in costs.
• Employers who want to minimize their fiduciary responsibilities.
• Employers above or approaching the plan participant count threshold for the IRS audit requirement.
• Employers with a preference for outsourcing; may already have a 3(38) investment manager.
• Employers who do not want to select, monitor and manage investments.
• Plans with more than $1 million in assets under management.
• Employers with more than 80 plan participants.
• Plans with good data and 360-degree payroll integration.
• Companies with stretched and overburdened HR resources.
• Companies with limited plan knowledge or experience.
• Employers who are flexible about their retirement plan brand.

Representatives at The Standard can help you learn more about PEPs, how to evaluate PEP providers and how to position PEPs among other solutions.

Contact a Local Consultant to Learn More

You can also download a printer-friendly PDF of this research for your personal use or to share with colleagues.