I like choice and I like the idea that there is something called Pooled Employer Plans (PEPs) in 2021 because I always liked the idea of Open Multiple Employer Plans (MEPs). Another great aspect of it is the discussion and debate concerning them.

I have spoken to many providers about PEPs and they’re wary of its success or lack thereof. We all have memories of the Open MEPs and how so many were never able to achieve they needed to be, to be cost-effective. Some providers are going all-in on PEPs and my concern is that it will be a gold rush where few providers will find gold and most, will just find worthless rocks. Those that succeed will figure out how to properly price these plans in both time and money. They will know the correct methods of distribution and growing assets big enough to justify the fees associated with an audit.

This isn’t automatic enrollment or another provision to grow plan assets for everyone, it’s going to be a niche market where very few plan providers will succeed.