PLANADVISER - January/February 2021 - 30
regulatory & compliance | administration
How to Choose a PEP
As pooled employer plans go live, advisers assume a new guiding role
A
mong the many changes ushered in this year by
the Setting Every Community Up for Retirement
Enhancement (SECURE) Act is the availability, for the
first time, of pooled employer plans (PEPs). These vehicles, a
type of multiple employer plan (MEP), allow unrelated organizations
to participate in the same retirement scheme.
Although the plans are intended to help small employers
access an affordable retirement plan, industry experts
expect that midsize companies may also see PEPs as a
viable option, due to their lower costs and the ability to
offload fiduciary responsibilities, says Karen DiStasio, vice
president, retirement consulting services at Commonwealth
Financial Network in Boston.
Still, DiStasio says, she does not expect employers to
be knocking down the doors of advisers clamoring for PEPs
right away.
" I think the demand will be driven by advisers and
service providers, " she says. " They will bring the potential
solution to their client, which will then generate interest
from the employers. "
With the PEP market still nascent, many advisers are
considering their role in the space and the best way to help
their clients navigate that space. While some plan sponsors
interested in a PEP may put out a request for proposals (RFP)
to evaluate potential vendors, others might go through the
process more informally, beginning with a conversation
with their existing plan provider.
Whether they go the RFP route or not, here are the questions
that advisers can help clients answer when evaluating
PEPs:
Have they vetted the companies running the plans?
Each PEP must be administered by a pooled plan provider
(PPP), which will take on the fiduciary duty of running the
plan and register with the Department of Labor (DOL). A
plan's PPP could be an adviser, recordkeeper, broker/dealer
(B/D) or insurance company.
" Advisers can assist their plan sponsor clients with
reviewing the services offered by the various PPPs being
considered, as well as the fees that PPPs will charge, and all
of the related documentation, " says Ari Sonneberg, an ERISA
[Employee Retirement Income Security Act] and employee
benefits attorney with The Wagner Law Group in Boynton
Beach, Florida. " It's also important that the adviser develop
30 | planadviser.com January-February 2021 Art by Leonardo Santamaria
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PLANADVISER - January/February 2021
Table of Contents for the Digital Edition of PLANADVISER - January/February 2021
Are You Leaving the Door Open?
A Question of Liability
How 3(38) Advising Profits Clients
The Tax Distinction
How to Choose a PEP
Plan Governance
Continuous Education
The Latest Word on ESG
ESG Investing Under ERISA
PLANADVISER - January/February 2021 - Cover1
PLANADVISER - January/February 2021 - Cover2
PLANADVISER - January/February 2021 - 1
PLANADVISER - January/February 2021 - 2
PLANADVISER - January/February 2021 - 3
PLANADVISER - January/February 2021 - 4
PLANADVISER - January/February 2021 - 5
PLANADVISER - January/February 2021 - 6
PLANADVISER - January/February 2021 - 7
PLANADVISER - January/February 2021 - 8
PLANADVISER - January/February 2021 - 9
PLANADVISER - January/February 2021 - 10
PLANADVISER - January/February 2021 - 11
PLANADVISER - January/February 2021 - 12
PLANADVISER - January/February 2021 - 13
PLANADVISER - January/February 2021 - Are You Leaving the Door Open?
PLANADVISER - January/February 2021 - 15
PLANADVISER - January/February 2021 - 16
PLANADVISER - January/February 2021 - 17
PLANADVISER - January/February 2021 - 18
PLANADVISER - January/February 2021 - 19
PLANADVISER - January/February 2021 - A Question of Liability
PLANADVISER - January/February 2021 - 21
PLANADVISER - January/February 2021 - 22
PLANADVISER - January/February 2021 - 23
PLANADVISER - January/February 2021 - How 3(38) Advising Profits Clients
PLANADVISER - January/February 2021 - 25
PLANADVISER - January/February 2021 - 26
PLANADVISER - January/February 2021 - 27
PLANADVISER - January/February 2021 - The Tax Distinction
PLANADVISER - January/February 2021 - 29
PLANADVISER - January/February 2021 - How to Choose a PEP
PLANADVISER - January/February 2021 - 31
PLANADVISER - January/February 2021 - Plan Governance
PLANADVISER - January/February 2021 - 33
PLANADVISER - January/February 2021 - 34
PLANADVISER - January/February 2021 - 35
PLANADVISER - January/February 2021 - Continuous Education
PLANADVISER - January/February 2021 - 37
PLANADVISER - January/February 2021 - The Latest Word on ESG
PLANADVISER - January/February 2021 - ESG Investing Under ERISA
PLANADVISER - January/February 2021 - 40
PLANADVISER - January/February 2021 - Cover3
PLANADVISER - January/February 2021 - Cover4
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