What’s driving PEP growth
Sponsoring a traditional single-employer retirement plan means carrying fiduciary duties that cover investment selection and monitoring, compliance testing, Form 5500 preparation and signature, plan document management, distribution approvals, and required minimum distribution processing. That list assumes either dedicated HR capacity or outside expertise, and most smaller employers have neither in abundance. Under a PEP, the pooled plan provider takes on the majority of those responsibilities, including 3(16) administrative fiduciary duties, while a registered investment manager handles investment oversight.
