Are PEPS The Next Frontier For Employer Retirement Plans?
Thursday, August 05, 2021
Offering your employees benefits makes you competitive. But providing benefits can be expensive and complicated to manage. Are you a small business trying find top talent? Is it a struggle to afford the benefits – like a 401K for employees – that candidates expect? The Minnesota Chamber and Securian Financial formed a strategic alliance to offer high-quality, affordable solutions to help you compete. Pooled Employer Plans (PEPs) are retirement plans that bring down cost by allowing multiple employers to participate. These plans help streamline administration and allow for better investment access for smaller businesses that was previously only achievable for large-scale employers.
The Setting Every Community Up for Retirement Enhancement Act that passed in late 2019 is the first significant retirement plan related legislation in more than a decade and is intended to help strengthen retirement security across the country. A key provision of the act allows employers to offer a retirement plan through a PEP, which should make it easier for small to midsized businesses to set up and administer a plan for their employees.