Today, U.S. employers sponsor over 500,000 individual 401(k) plans that can be complicated, risky, and costly to manage. The SECURE Act now allows employers from all industries and sizes to band together to create a new type of retirement plan: pooled employer plan (PEP).
Employers may now participate in a PEP instead of sponsoring a traditional 401(k) plan. PEPs offer advantages to employers and employees:
- Less work for HR teams
- Less risk for fiduciaries
- Lower costs and improved outcomes for employees
To learn more, continue reading the article above.