SIMPLIFY YOUR RETIREMENT PLAN MANAGEMENT THROUGH SMOOTH PEP – POOLED EMPLOYER PLAN
SMOOTH PEP
Managing a retirement plan doesn’t have to be complicated
Unlike a traditional 401(k), where the plan sponsor carries much of the administrative and fiduciary responsibility, a Pooled Employer Plan (PEP) takes that work away from the plan sponsor.
Smooth PEP is a group retirement plan solution designed for employers to help reduce complexity and fiduciary risk, minimize administrative tasks, and drive tailored outcomes – so you can focus more time running your business while offering employees a competitive retirement benefit.
What is a PEP?
A PEP (Pooled Employer Plan) is a type of defined contribution retirement plan that allows multiple unrelated employers to participate in a single retirement plan administered by a professional provider.
PEPs were created by the SECURE Act of 2019 to make it easier and more cost-effective for employers to offer retirement benefits, especially small and mid-sized businesses.
Instead of each employer sponsoring and administering its own separate 401(k) plan, participating employers join a shared plan managed by a Pooled Plan Provider (PPP), which assumes many of the administrative and fiduciary responsibilities.
In summary, a PEP is:
- A single qualified retirement plan shared by multiple unrelated employers.
- Administered by a registered Pooled Plan Provider (PPP).
- Designed to reduce administrative burden and fiduciary risk for participating employers.
- Intended to increase access to workplace retirement savings.
- Governed by the same IRS and ERISA rules that apply to traditional 401(k) plans.
SMOOTH PEP
Key Components
Pooled Plan Provider (PPP)
The PPP is responsible for:
- Establishing the plan
- Serving as the primary plan fiduciary
- Managing administration
- Coordinating required filings
- Monitoring service providers
- Ensuring compliance with retirement plan regulations
Participating Employers
Each employer:
- Chooses to join the PEP.
- Decides whether to make employer contributions.
- Selects eligibility and matching provisions (within plan parameters).
- Remains responsible for prudent selection and ongoing monitoring of the PPP.
- Handles payroll and employee data submissions.
Employees
Employees experience a retirement plan similar to a traditional 401(k), including:
- Pre-tax and/or Roth contributions
- Employer matching (if offered)
- Investment choices
- Vesting schedules
- Loans (if permitted)
- Distributions under standard retirement plan rules
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