Today defined contribution (DC) plans are the primary retirement savings vehicle for most U.S. employees, even as sponsoring a plan has become increasingly complex and time-consuming. Recent legislative changes, such as the SECURE Act and SECURE 2.0, acknowledge these challenges and offer potential solutions for employers, including easier access to a Pooled Employer Plan (PEP).
Though PEPs can allow companies to deliver the value of retirement benefits with less effort and risk, improved outcomes for employees and often lower total plan costs, some employers have been reluctant to consider them. Based on our many conversations with plan sponsors and fiduciaries, we list and debunk five common misperceptions about PEPs that persist in the market.
How LifeSight can help: LifeSight brings WTW’s experience in DC plan management and strong track record of delivering pooled DC plans across the globe. Our recordkeeping partner, Transamerica, has decades of experience providing pooled plan solutions and administers pooled plan assets for nearly 500,000 participants.[3]
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How LifeSight can help: LifeSight offers an innovative PEP solution for employers of all sizes, providing engaging user experiences, full delegation, and cost-effective investments for improved retirement outcomes.
How LifeSight can help: Our goal aligns with employers — to secure the best retirement outcomes for employees. This is achieved through competitive fees, research-driven investments and an engaging user experience for informed decision-making.
How LifeSight can help: PEPs vary in features. The LifeSight PEP blends flexibility and efficiency, allowing for employer-driven design elements while incorporating WTW’s best practices for tailored solutions.
How LifeSight can help: LifeSight provides information for employer fiduciary monitoring and transparent fees for both investments and administrative services.
