Vestwell makes it easier than ever for advisors to streamline operations across pooled retirement plans. Employers may be eligible to have 100% of startup costs covered by small business tax credits with Pooled Employer Plans (PEPs).
What are Pooled Employer Plans (PEPs)?
Pooled Employer Plans (PEPs) allow unrelated employers that meet certain requirements to band together to participate in a single retirement plan, sponsored by a pooled plan provider (PPP). A PPP can be any entity that registers with the Department of Labor and Internal Revenue Service. Recordkeepers, TPAs, payroll providers, and registered investment advisors are most likely to sponsor PEPs. PEPs are considered a subset of Open Multiple Employer Plans (MEPs).
Employers that are not currently sponsoring retirement plans and existing plans that are subject to audits are strong candidates.
What are the key benefits for employers?
- Ability to delegate many fiduciary liabilities to a third party
- Utilizes economies of scale and reduces administrative burdens
- Plans requiring an annual audit may see reduced fees and save time by joining a PEP
What are the key benefits for advisors?
- Streamlined plan implementation
- Flexible plan design
- Versatile retirement savings options
- 190+ payroll integrations