A Pooled Employer Plan (PEP) is a 401(k) solution where many different companies participate in a master plan, while still maintaining plan customization at the adopting employer level. There is no need to have a common “nexus” as there is in a Multiple Employer Plan (MEP).
As an adopting employer, the main benefits of a Pooled Employer Plan come from harnessing the power of many. Since there are many different employers participating in the plan, the employers of the plan benefit from shared costs and economies of scale, providing much cheaper access to the best fund lineups.
Quite simply, it levels the playing field between small and medium-sized businesses and large corporations and allows for equality in retirement savings solutions for their employees. This also helps smaller employers attract and retain top talent they may otherwise lose to an employer who can offer a more competitive benefits package.
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