With the growing popularity of pooled employer plans (PEPs) and the increasing number of offerings, financial professionals need to consider their differences and how they match up with the needs of plan sponsors. This article suggests some considerations for that evaluation.
For context, this article assumes that a PEP has the foundational elements: A pooled plan provider (PPP) as the primary fiduciary; a 3(16) fiduciary administrator (which could also be the PEP); a recordkeeper (which could be the PPP, but often is not); and a 3(38) discretionary investment manager that selects and monitors the investment lineup.
The views expressed here are those of Fred Reish. They should not be construed as investment advice or as the views of Hartford Funds or the employees of Hartford Funds. They are based on available information and are subject to change without notice. The information above is intended as general information and is not intended to provide, nor may it be construed as providing, tax, accounting or legal advice. As with all matters of a tax or legal nature, please consult with your tax or legal counsel for advice. This material and/or its contents are current at the time of writing and may not be reproduced or distributed in whole or in part, for any purpose, without the express written consent of Fred Reish.