Pentegra, in conjunction with The 401(k) Plan Company, has announced the launch of an independent Pooled Employer Plan (PEP) open to any 401(k) plan sponsors and advisors.
The new PEP, “A Better 401(k) Plan,” is not prohibited by proprietary investment requirements to allow advisors to have input on the investment menu as opposed to having to choose a recordkeeper’s standard product, the announcement explains. As such, the PEP empowers employers and advisory firms with leading-edge technology, such as an artificial intelligence due diligence tool, to deliver more comprehensive investment committee decision-making. In addition, each PEP can be private-labeled based on the state in which the company is located.
Currently two platform and design options are available, with Pentegra serving as the ERISA 3(16) fiduciary and 401(k), LLC serving as the ERISA 3(38) investment manager for both arrangements.
“As one of America’s oldest independent fiduciaries, we believe PEPs are an ideal way to help make offering a retirement plan easier for businesses,” stated John E. Pinto, Pentegra President and CEO. “PEPs allow each adopting employer to reduce its administrative and fiduciary burdens, as the PPP and 3(38) investment fiduciary shoulder responsibilities on behalf of the adopting employers. Pooled retirement benefit plans also allow cost efficiencies for adopting employers based on pooling the plan’s assets.”
