Pooled Employer Plans (PEPs)

A Scalable Retirement Plan Solution for Growing Employers

Benefits² Administrators works with leading national providers to offer Pooled Employer Plan (PEP) solutions for employers and financial advisors who want a simplified and scalable approach to retirement plan administration.

Through our partnerships with Voya and Empower, employers can participate in professionally managed pooled plans while continuing to receive the high-touch compliance support and consulting that Benefits² Administrators is known for.

PEPs were introduced under the SECURE Act to allow unrelated employers to participate in a single retirement plan. This structure can create operational efficiencies and reduce administrative complexity compared to maintaining a standalone plan.

Why Some Employers Choose a Pooled Employer Plan

A Pooled Employer Plan can offer several advantages, particularly for employers who want the benefits of a large plan while reducing administrative burden.

Reduced Audit Costs for Larger Plans

One of the most significant advantages of a PEP is the shared audit structure.

In a traditional retirement plan, once a plan reaches 100 eligible participants with balances, the employer must obtain an independent annual audit, which can cost thousands of dollars each year.

With a PEP:

Participating employers generally do not require their own plan audit
The audit is conducted once at the pooled plan level
Costs are shared across all participating employers

This can significantly reduce the audit burden for growing plans.

Professional Investment Oversight

PEP solutions typically include an independent 3(38) investment fiduciary responsible for selecting and monitoring the investment lineup.

This structure can:

Provide professional investment governance
Reduce fiduciary risk for employers
Ensure ongoing monitoring of fund performance and expenses

For example, both the Voya and Empower PEP structures include institutional investment oversight through Envestnet.

Simplified Plan Administration

PEPs centralize many administrative responsibilities that normally fall on the employer.

Key responsibilities handled within the pooled structure may include:

Form 5500 preparation and filing
Investment selection and monitoring by a 3(38) fiduciary
Coordination of required notices and plan documentation
Consolidated compliance oversight

This structure allows employers to focus more on their business and less on the complexities of plan administration.

Competitive Retirement Plan Features

Because PEPs aggregate many employers into one plan structure, they can often deliver features commonly found in larger plans, including:

Broad investment menu options
Participant advice and guidance
Modern participant technology platforms
Targeted participant communications and education

This can help employers offer a competitive retirement benefit to attract and retain employees.

Benefits² Administrators currently supports Pooled Employer Plans offered through:

Voya – TotalFlex TPA PEP

This PEP combines:

Voya – Recordkeeper
AmericanTCS – Pooled Plan Provider
Envestnet – 3(38) investment fiduciary
Local TPA support for plan consulting and compliance services

Empower – Total Plan Alliance PEP

This PEP combines:

Empower – Recordkeeper
AmericanTCS – Pooled Plan Provider
Envestnet – 3(38) investment fiduciary
Local TPA support for plan consulting and compliance services

A Flexible Option for Advisors and Employers

While many employers continue to benefit from standalone retirement plans, Pooled Employer Plans can be an effective option in situations where:

The plan is approaching audit thresholds
The employer prefers reduced fiduciary and administrative responsibility
A simplified structure is preferred
Advisors want a scalable retirement plan solution for certain clients

Benefits² Administrators is happy to help financial advisors and employers evaluate whether a PEP is the right fit for their situation.

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Pooled Employer Plans (PEPs)

Pooled Employer Plans (PEPs)

A Scalable Retirement Plan Solution for Growing Employers

Why Some Employers Choose a Pooled Employer Plan

A Flexible Option for Advisors and Employers

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