In the end, there can be only a few PEPs

Ary Rosenbaum
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Ary Rosenbaum - The Rosenbaum Law Firm P.C.

The original Highlander is kind of a silly movie, with the tagline “there can be only one.” I do like the fact that Sean Connery is in it and the fact I was in the crowd at the Pro Wrestling USA card at the Brendan Byrne Arena used for the beginning of the movie (and no, Christopher Lambert wasn’t there).

As far as there can be only one, I find the same thing about Pooled Employer Plans (PEPs). While everyone is getting a PEP the way that Oprah Winfrey would hand out free stuff to her audience, I will claim that 90-95% of PEPs will fail because I am convinced that most of them won’t get much in assets. There are way too many PEPs for the demand. The demand is there, but I just think there is a glut out there because every provider who wanted their own PEP, started one. The PEP start-up process is long and exhausting, I have one that had been in the works for 11 months. It takes forever (or feels like it) in setting it up, as most providers have had a tough time drafting agreements and getting things ready.

Again, it’s like with any fad or phenomenon, there is a lot of demand and without people, realizing way too much supply.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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