The PEP Gold Rush

Ary Rosenbaum

Ary Rosenbaum - The Rosenbaum Law Firm P.C.

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.

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.

© Ary Rosenbaum, The Rosenbaum Law Firm P.C. | Attorney Advertising

Written by:

Ary Rosenbaum

The Rosenbaum Law Firm P.C. on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide
- hide

This website uses cookies to improve user experience, track anonymous site usage, store authorization tokens and permit sharing on social media networks. By continuing to browse this website you accept the use of cookies. Click here to read more about how we use cookies.