A pooled employer plan, also known as a PEP, allows multiple businesses to reside under the same retirement plan. Each business under a PEP can differ both in size and industry, making the plan truly accessible.  

Pooled employer plans are great for businesses of all sizes but are especially useful to small businesses. This is because many small businesses stand to gain the most from the savings this type of plan has to offer. Pooled employer plans allow you to focus on growing your business and not get stuck with the stress of administrative work. On top of this, many retirement mandates require businesses of all sizes to administer a retirement plan. This means choosing an easy and affordable option has never been more pivotal. 

The Advantages of a Pooled Employer Plan 

Pooled employer plans take less time to administer and less time to maintain. Since the plan is pre-established, adding another employer to the plan takes significantly less time than setting it up from scratch. Under this plan, you will have more time to focus on your business’ needs without worrying whether your employees are getting the financial support they need. 

Since adding new employers to the plan is easier than in other plan types, retirement plan administrators (like Leading Retirement Solutions) can pass the savings along to their clients - making pooled employer plans one of the more affordable retirement plan options.  

Pooled employer plans are also less stressful to maintain. Most aspects of the plan are managed by a plan representative like Leading Plan Solutions (LPS). While typically the job of the business owner, most administrative duties are passed to the plan representative. The plan representative accepts responsibility to maintain compliance under current ERISA retirement regulations. Each employer under a pooled plan can rest easy knowing that administrative maintenance, yearly audits, filing a Form 5500, and more are already taken care of. 

What Does the PEP offer me as the Employer? 

• Manage their plan accounts through the LRS online portal.  
• Customize the eligibility requirements for employees, vesting, tax-deductible matching, and profit-sharing of your plan. 
• Collect IRS tax credits available for new plan installation  
• Have full access to monitor and manage your plan online  
• Delegate annual IRS compliance and discrimination testing  
• Provide employee resources & support through a knowledgeable team. 

What Does the PEP Offer Me as an Employee? 

• The ability to participate in a competitive and robust retirement program. 
• Ways to manage their account and investments on-demand and online.  
• Access to their tax-advantaged and Roth savings vehicles. 
• Roll-over retirement accounts from previous employers. 
• Opportunities to participate in educational meetings with dedicated financial advisors. 

Who is a Pooled Employer Plan For? 

Because pooled employer plans offer limited customization capabilities, this option may not work for every business. 

Before joining a PEP, it's important to know what to look for in a retirement plan - so you can ensure you’re in a plan that will help achieve your financial goals for the lowest possible price.  

Note that participating in a PEP does not mean you will receive less service than other plans. While each employer is under the same retirement plan, we believe each business deserves a custom client experience. LRS is always here to help you navigate the process of retirement plan implementation and investment.

For more tips and information about retirement plans, contact us. 

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