PLANADVISER - September/October 2022 - 34
beyond 401(k) / PEPs
PEPs' Slow Growth
Economic distractions and alternative options have lessened the uptake
N
early three years since the Setting Every Community
Up for Retirement Enhancement Act passed, the
adoption of pooled employer plans, which the act
enabled, is still waiting to take off.
The slower than expected pace reflects several headwinds
faced by small businesses-the market the SECURE
Act had targeted to boost retirement plan access for the
employees. Many such businesses, research shows, put
retirement plan initiatives on the back burner, as PEPs
launched in 2020 during the pandemic's troubled economy,
and have kept them there due to recession fears and inflation
concerns.
" Small businesses had just been trying to stay [viable]
and keep their doors open for the past few years, " says Frank
Zugaro, head of Huntington Private Bank's retirement plan
services business, in Akron, Ohio. " We're just starting to see
them come out of that. "
Still, more than half of small employers surveyed by the
LIMRA Secure Retirement Institute in May said they are
interested in learning more about PEPs.
A possible reason the uptake of the plans has been
moderate at best has been a proliferation of other options
that also deliver low costs and lighter administrative duties
to providers, Zugaro says. Those include both new offerings
from fintech startups and more competitive options from
existing recordkeepers.
" Some of the recordkeeping firms changed their strategy
and said, 'Well, let's offer a more competitive product and
provide 3(16) service along with our recordkeeping service,' "
Zugaro says. " The cost of 3(16) as a bolt-on service has come
down significantly over the past three years. "
Unrealistic Expectations
Michael Doshier, a senior retirement strategist at T. Rowe
Price U.S. Intermediaries in Baltimore, says the pace of
adoption is what he thought it would be.
34 | planadviser.com September-October 2022
Art by Melinda Beck
http://www.planadviser.com
PLANADVISER - September/October 2022
Table of Contents for the Digital Edition of PLANADVISER - September/October 2022
The Possibilities Ahead
The Full Potential
2022 PLANADVISER National Conference
NQDC Investment Menus
Reg BI’s Impact on 403(b)s
PEPs’ Slow Growth
Scaling for the Future
Rollover Rules for 457(b) Plans
Jorge Bernal
PLANADVISER - September/October 2022 - Cover1
PLANADVISER - September/October 2022 - Cover2
PLANADVISER - September/October 2022 - 1
PLANADVISER - September/October 2022 - 2
PLANADVISER - September/October 2022 - 3
PLANADVISER - September/October 2022 - 4
PLANADVISER - September/October 2022 - 5
PLANADVISER - September/October 2022 - 6
PLANADVISER - September/October 2022 - 7
PLANADVISER - September/October 2022 - 8
PLANADVISER - September/October 2022 - 9
PLANADVISER - September/October 2022 - 10
PLANADVISER - September/October 2022 - 11
PLANADVISER - September/October 2022 - 12
PLANADVISER - September/October 2022 - 13
PLANADVISER - September/October 2022 - 14
PLANADVISER - September/October 2022 - 15
PLANADVISER - September/October 2022 - The Possibilities Ahead
PLANADVISER - September/October 2022 - 17
PLANADVISER - September/October 2022 - 18
PLANADVISER - September/October 2022 - 19
PLANADVISER - September/October 2022 - 20
PLANADVISER - September/October 2022 - 21
PLANADVISER - September/October 2022 - The Full Potential
PLANADVISER - September/October 2022 - 23
PLANADVISER - September/October 2022 - 24
PLANADVISER - September/October 2022 - 25
PLANADVISER - September/October 2022 - 2022 PLANADVISER National Conference
PLANADVISER - September/October 2022 - 27
PLANADVISER - September/October 2022 - 28
PLANADVISER - September/October 2022 - 29
PLANADVISER - September/October 2022 - NQDC Investment Menus
PLANADVISER - September/October 2022 - 31
PLANADVISER - September/October 2022 - Reg BI’s Impact on 403(b)s
PLANADVISER - September/October 2022 - 33
PLANADVISER - September/October 2022 - PEPs’ Slow Growth
PLANADVISER - September/October 2022 - 35
PLANADVISER - September/October 2022 - Scaling for the Future
PLANADVISER - September/October 2022 - 37
PLANADVISER - September/October 2022 - 38
PLANADVISER - September/October 2022 - Rollover Rules for 457(b) Plans
PLANADVISER - September/October 2022 - Jorge Bernal
PLANADVISER - September/October 2022 - Cover3
PLANADVISER - September/October 2022 - Cover4
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