POOLED EMPLOYER PLAN (PEP) created in 2019 under the Setting Every Community Up for Retirement Enhancement Act of 2019 (SECURE Act) intends to:
- Extend retirement plan accessibility especially to small employers (according to the Federal Reserve Report on the Economic Well-Being of U.S. Household in 2018[1], “One-quarter of the nonretired indicate that they have no retirement savings or pension whatsoever. Of the non-retired age 60 and older, 13 percent have no retirement savings or pension.”)
- By pooling assets and resources from many small employers reduces the cost to adopt, offer and administer an account-based, self-directed defined contribution retirement plan to employees
- Offer large plan and institutional practices.
Please find here a complete summary regarding PEP.
[1] https://www.federalreserve.gov/publications/files/2018-report-economic-well-being-us-households-201905.pdf