News that Principal has transitioned administration of its largest pooled employer plan (PEP), Principal EASE, to FuturePlan by Ascensus isn’t just a reshuffling of duties — it’s a smart move in a maturing market.
Principal EASE serves a large base of small- and mid-sized businesses, many of which are new to offering a retirement plan. That means getting administration right isn’t optional — it’s mission-critical. By bringing in FuturePlan as the 3(16) fiduciary and TPA, Principal is doubling down on what it does best: investments, recordkeeping, and distribution. And it’s outsourcing the complex and time-consuming tasks to a TPA that already supports over 37,000 plans.
It’s a sign of the times. PEPs aren’t a novelty anymore. They require real infrastructure, clear roles, and expert compliance. With the number of 401(k) plans expected to pass one million by 2030, providers who know when to delegate—and who to delegate to—will lead the pack.
This isn’t a step back for Principal. It’s a step forward for everyone in the PEP ecosystem: providers, advisers, employers, and ultimately, participants.
