PLANADVISER -May/June 2022 - 9

All Eyes on PEPs
Some small employers are warming to the plans
MORE than half of smaller employers say they are interested in learning more about
pooled employer plans, according to new data from the LIMRA Secure Retirement
Institute. According to Deb Dupont, assistant vice president, worksite retirement at the
institute, employers that already offer retirement benefits are showing more interest in
PEPs. " Ironically, when there's already a plan in place, we see smaller employers having a
higher interest in PEPs than do those that don't already have a plan. Interest in starting a
plan is lukewarm at best among small non-plan-sponsor employers, " Dupont notes.
" Small employers that do have a plan-presumably a standalone-may be drawn
to streamlined administration and the lure of lower costs and liability. " She points to
provisions in this year's Securing a Strong Retirement Act-dubbed SECURE 2.0 after the
Setting Every Community Up for Retirement Enhancement Act of 2019; these aim to help
small employers offer a plan and could " spike more interest in both standalones and PEPs, "
she says.
Overall, interest has increased since Q4 2020, observes Terrance Power, president of
pooled plan provider The Platinum 401k, who is not affiliated with LIMRA's research. " We
have seen sponsor interest in PEPs increase significantly, " he says.
" Plan sponsors are reviewing the options available to them to determine which PEP
would best suit their company's plan and participants, " he says. In 2020, a handful of
PEPs were established, Power says, and the number has increased. He pegged it at 233,
based on Department of Labor registration-site figures.
" The sweet spot for most PEPs appears to be the sponsor that's subject to an annual
plan audit as part of its Form 5500 filing, " says Power. " There can be a significant cost
savings available to the company, as well as a dramatic fiduciary liability offload. Our
typical adopting employer has around 150 employees and $5 million in current plan
assets, " though some larger companies with plan assets approaching $100 million are
also showing interest, he says. -Noah Zuss
talking points
Why Institutional Clients Leave
An Investment Firm*
1) Investments underperformed
2) Fees are too high
1) Failure to adopt an industry standard
voluntary code of conduct
2) Disagreement over corporate
views on social or political issues
The top two reasons
institutional clients went
elsewhere to invest in 2020
also dropped the most as
priorities a year later. Over
that time, performance
had strengthened, and the
ongoing trend toward fee
compression had improved
*Nine hundred seventy-six institutional investors were surveyed last October and November from
15 markets across the globe.
Source: 2022 CFA Institute, " Enhancing Investors' Trust: 2022 CFA Institute Investor Trust Study "
➜ T. Rowe Price Group
Inc. announced that
Poppy Allonby is
joining the firm as
head of environmental,
social and governance
Voya Financial Inc.
hired Stacey Hughes
as a senior vice president
and chief information
security officer.
➜ Certified Financial
Planner Board of
Standards Inc. named
Michael Kothakota as
its first head of research.
➜ Mercer Global
Advisors Inc., has
acquired Sanford
Advisory Services LLC,
a wealth management
firm headquartered in
Portage, Michigan.
➜ Kellie Kane joined
NEPC as a partner and
chief operating officer.
➜ Verity Asset
appointed Jae Di
Lorenzo as director
of participant
engagement and as
ambassador for the
company's plan
governance platform.
➜ Alerus promoted
Rob Woytassek to
senior vice president
and director of retirement
and benefits. May-June 2022 | 9

PLANADVISER -May/June 2022

Table of Contents for the Digital Edition of PLANADVISER -May/June 2022

PLANADVISER Industry Leaders Awards
Paving the Way
2022 DCIO Survey
Fool's Gold for 401(k)s?
Design and Stability
A Collective Effort
Cryptocurrency In DC Plans
Real Estate Fund Investments
PLANADVISER -May/June 2022 - Cover1
PLANADVISER -May/June 2022 - Cover2
PLANADVISER -May/June 2022 - 1
PLANADVISER -May/June 2022 - 2
PLANADVISER -May/June 2022 - 3
PLANADVISER -May/June 2022 - 4
PLANADVISER -May/June 2022 - 5
PLANADVISER -May/June 2022 - 6
PLANADVISER -May/June 2022 - 7
PLANADVISER -May/June 2022 - 8
PLANADVISER -May/June 2022 - 9
PLANADVISER -May/June 2022 - PLANADVISER Industry Leaders Awards
PLANADVISER -May/June 2022 - 11
PLANADVISER -May/June 2022 - 12
PLANADVISER -May/June 2022 - 13
PLANADVISER -May/June 2022 - 14
PLANADVISER -May/June 2022 - 15
PLANADVISER -May/June 2022 - 16
PLANADVISER -May/June 2022 - 17
PLANADVISER -May/June 2022 - 18
PLANADVISER -May/June 2022 - 19
PLANADVISER -May/June 2022 - Paving the Way
PLANADVISER -May/June 2022 - 21
PLANADVISER -May/June 2022 - 22
PLANADVISER -May/June 2022 - 23
PLANADVISER -May/June 2022 - 2022 DCIO Survey
PLANADVISER -May/June 2022 - 25
PLANADVISER -May/June 2022 - 26
PLANADVISER -May/June 2022 - 27
PLANADVISER -May/June 2022 - 28
PLANADVISER -May/June 2022 - 29
PLANADVISER -May/June 2022 - Fool's Gold for 401(k)s?
PLANADVISER -May/June 2022 - 31
PLANADVISER -May/June 2022 - 32
PLANADVISER -May/June 2022 - 33
PLANADVISER -May/June 2022 - Design and Stability
PLANADVISER -May/June 2022 - 35
PLANADVISER -May/June 2022 - A Collective Effort
PLANADVISER -May/June 2022 - 37
PLANADVISER -May/June 2022 - 38
PLANADVISER -May/June 2022 - Cryptocurrency In DC Plans
PLANADVISER -May/June 2022 - Real Estate Fund Investments
PLANADVISER -May/June 2022 - Cover3
PLANADVISER -May/June 2022 - Cover4