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News > News Archive > QOTW: PEPs




This week we asked plan sponsors if their organization is moving or considering moving to a Pooled Employer Platform (PEP) as allowed in the SECURE Act. More than 90 percent of respondents indicated that they are not currently considering it and are not interested. No respondents indicated they are moving to a PEP and only three percent are considering it. Several respondents indicated that they think PEPs are a great idea for small companies, but not really a solution for large employers, at least for now.

Comments include:

  • I think moving to a PEP is more relevant for smaller plans and there are benefits to do doing it.
  • I think these are good for small plans not sure if they fit the large plan market. Plan design and ability to manage your account is critical to our population of staff, lawyers and associates.
  • I think they are a great solution for small companies. We are a mega plan and very complex. This solution is not for us.
  • Our administrative processes and fees are not much of an issue. Added complication and risk from pooling seems like a solution in search of a problem, at least for employers of our size - 450 employees
  • Our company would prefer to have the control over investments, but would also be concerned about fiduciary liability.
  • Reduces alignment with goals and objectives for employer and employee.
  • We are concerned about giving up control.  As much as PEPs claim to offer advantages, someone is responsible for the design and operation.  Who is that and how are they making decisions?
  • We have a customized plan design, with legacy provisions.  It would not make sense for us to move to a PEP.
  • We operate a denominational retirement plan in a decentralized ministry environment and have operated a MEP for over close to 40 years. Our common industries are church and church related organizations within a single denomination. For now we are not interested in a PEP because our plan is highly tailored with proprietary investments (core & TRF) and we also have QLACs. As PEPs grow and develop, a time may come where they offer compelling value.  In those cases, we will reevaluate our position.