With each election, potential changes to tax policies, workplace regulations and employee benefits requirements can introduce uncertainty for employers. One area where employers can find stability is in their retirement plans.
For employers managing a single-employer defined contribution plan, staying compliant means keeping up with shifting regulations, fiduciary responsibilities and administrative requirements. One area where employers can find stability regardless of political changes is in a Pooled Employer Plan (PEP).
Election outcomes can influence retirement plan rules, from plan design rules to compliance standards and fiduciary standards. Employers managing their own defined contribution plans must stay informed, adjust policies and ensure compliance with evolving regulations.
In a PEP, the provider assumes key responsibilities and risks associated with plan administration, compliance filings and fiduciary oversight of all plan services. The provider navigates regulatory and legislative changes on behalf of participating employers. According to the 2024 WTW Defined Contribution Survey, more than a third of employers say that legal and operational compliance is a top priority over the next two years. This underscores the pressure employers face in staying on top of an ever-evolving regulatory landscape. Instead of worrying about new regulations, employers in a PEP can rely on their provider to ensure the plan remains compliant and competitive.
Shifting the retirement plan burden to a PEP allows employers to reclaim time and resources to focus on broader business goals. Employers can focus on driving growth, enhancing employee engagement and adapting to new market conditions.
Regardless of political shifts, employees still need a strong, stable retirement plan. A PEP may enhance employee retirement outcomes. Features like low-cost investment options, personalized guidance and behavioral nudges can encourage saving and help participants stay on track for their long term financial goals. Simultaneously, a PEP allows employers to continue offering a competitive benefit without getting caught up in regulatory uncertainty.
For employers looking to simplify retirement plan management while staying focused on broader business and benefits challenges, a PEP offers a smart, scalable solution. Why take on the burden of constant change when a PEP provider can manage it for you?
We provide a range of defined contribution plan solutions to support your retirement strategy. Reach out to learn more about the WTW LifeSight PEP and how we can help you meet your retirement strategy needs.
This document provides information on LifeSight Pooled Employer Plan (PEP) services that are being offered to you by WTW. Willis Towers Watson US LLC and Towers Watson Investment Services, Inc. or their affiliates are not acting in the capacity of providing “Investment Advice” within the meaning of 29 C.F.R. § 2510.3-21. It is your decision whether to engage WTW to provide any services or to invest in any investment available through WTW’s LifeSight PEP offering.
This document was prepared for general information purposes only and does not take into consideration individual circumstances. The information contained herein should not be considered a substitute for specific professional advice. In particular, its contents are not intended by Willis Towers Watson US LLC and Towers Watson Investment Services, Inc., and their parent, affiliates, and their respective directors, officers and employees (WTW) to be construed as the provision of investment, legal, accounting, tax or other professional advice or recommendations of any kind, or to form the basis of any decision to do or to refrain from doing anything. The information included in this presentation is not based on the particular investment situation or requirements of any specific trust, plan, fiduciary, plan participant or beneficiary, endowment, or any other fund; any examples or illustrations used in this presentation are hypothetical. As such, this document should not be relied upon for investment or other financial decisions and no such decisions should be taken on the basis of its contents without seeking specific advice. WTW does not intend for anything in this document to constitute “investment advice” within the meaning of 29 C.F.R. § 2510.3-21 to any employee benefit plan subject to the Employee Retirement Income Security Act and/or section 4975 of the Internal Revenue Code.
This document is based on information available to WTW at the date of issue, and takes no account of subsequent developments. In addition, past performance is not indicative of future results. In producing this document WTW has relied upon the accuracy and completeness of certain data and information obtained from third parties. This document may not be reproduced or distributed to any other party, whether in whole or in part, without WTW’s prior written permission, except as may be required by law. Views expressed by other WTW consultants or affiliates may differ from the information presented herein. Actual recommendations, investments or investment decisions made by WTW, whether for its own account or on behalf of others, may differ from those expressed herein.
