Your Business Can Have the
Retirement Plan You’ve Always Wanted

We know saving for retirement is crucial so why do millions of Americans not have access to a retirement plan? 

For most employers without a plan, it’s a cost issue. Don’t you think the business owner wants to save money too? For others it might not be the cost, it could be they fear the liability and the administration of the plan distracting from other business pursuits.

What if we could remove the financial and administrative burden?

It’s only been two years since the creation of the newest qualified plan on the block, the Pooled Employer Plan (PEP). Why is the new kid so great? Let’s find out…

401(k). The thing you know.

You already know a 401(k) is a retirement savings plan offered by employers to their employees. With a 401(k), employees can contribute a portion of their income to a retirement account, and the contributions are invested in stocks, bonds, and other securities. The contributions grow tax-free until they are withdrawn, usually after retirement.

So who’s the new guy? What is a PEP?

A Pooled Employer Plan (PEP) is a new type of retirement plan that was introduced in 2021. It is like a 401(k) in that it is a retirement savings plan offered by employers, but it differs in that it allows multiple unrelated employers to share their investment managers and plan sponsors. This means that employees of different companies can participate in the same retirement plan structure, while still allowing employers to design a unique plan, which can lead to lower administrative costs and better investment options.

Don’t retirement plans come with an administrative burden?

401(k) plans place fiduciary responsibility upon employers and the employees of the company. This burden makes it so the company is liable for investment management, promptly sending notices to employees, regularly reviewing the plan, and understanding constantly changing legislation regarding retirement plans.

PEPs, on the other hand, pass the fiduciary burden to the Plan Sponsor and Investment Manager. No fiduciary training or committees need to be performed in a PEP. Notices are sent electronically to all participants, regardless of employer. Rules and regulations are automatically administered at the plan sponsor level and program updates are processed smoothly across all adopting employers.

Contribution Limits

In 2023, both PEP and 401(k) plans offer a $22,500 contribution limit. Those aged 50 or older can make an additional catch-up contribution of up to $7,500. The employer may also contribute to the employee’s 401(k) plan, up to a certain amount.

What’s Next?

The 401(k) and other workplace-qualified plans had their time in the sun. They’re still a viable option but the Pooled Employer Plan is taking big strides to be the low-cost, low-burden champion for small to medium-sized businesses. If you have a qualified plan already and wonder if there’s a way to reduce your liability, the Pooled Employer Plan can do that. If plans of old seemed cost prohibitive, the PEP offers the most competitive option to enter the greater world of retirement savings.


Are you shopping for a new plan? Do you have a plan but wonder how your life can get easier?

Let’s Chat