Where the PEP makes most sense

PEP jiggsaws

We still have a retirement crisis in this country as people don’t have enough retirement savings and so many people don’t have access to a retirement plan at work. The Georgetown University Center for Retirement Initiatives estimates there are 57 million private-sector workers which represent 46% of the population working in the private sector, that don’t have access to a retirement plan at their workplace.


This is the market for pooled employer plans (PEPs), companies with zero retirement plans that may want one if they don’t have to deal with the fiduciary headaches by joining a PEP. While some existing plans may join a PEP, I think the bulk of the adopting employers that join a PEP are going to be employers that don’t have a plan in place or are in one of those states that will require to either offer one or a State IRA program.

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