POOLED EMPLOYER PLAN SERVICES

America’s Retirement Pooled Employer Plan (January 1st, 2021)

As of January 1st, 2021, our Multiple Employer Plan (MEP) will switch to a Pooled Employer Plan (PEP). Both Multiple Employer Plans and Pooled Employer Plans allow for separate employers to group their retirement plans under one common sponsor. Each company that adopts into the group plan is called a participating employer. All companies do not see the Multiple Employer Plans and Pooled Employer Plans offer many benefits including but not limited to the following:

  • Removal of Audit Filing (if applicable)– The Pooled Employer Plan eliminates your need to file an annual retirement plan audit. This saves your staff significant time and your company money (401(k) audits typically cost $5,000 to $15,000).
  • Removal of Form 5500 Filing – After you join a Pooled Employer Plan you will no longer have to file your annual Form 5500 retirement plan tax filing. This will save your company time, energy, and resources that can be redeployed.
  • Economies of Scale Pricing – Because of the PEP’s significant purchasing power the group plan receives economies of scale pricing both from the administrative service providers and the investment providers. Typically, we find that most plans save 30% – 50% annually by adopting into the group plan.
  • Outsourced Fiduciary Services – Pooled Employer Plans eliminate a majority of the retirement plan sponsors fiduciary responsibility. The PEP plan sponsor is the fiduciary over the investments and the administration of plan.
  • Professional Investment Monitoring – The Pooled Employer Plan has a 3(38) Investment Consultant overseeing the plans investments.
  • Professional Administration – The group plan is monitored by a 3(16) Administrative Fiduciary to ensure it stays in compliance.
  • Plan Design Flexibility – Each adopting employer of the Pooled Employer Plan can have their own customize plan design and features including but not limited to; plan match, vesting, eligibility etc.

Other benefits that America’s Retirement plan offers that are not related to its Pooled Employer Plan status include the following:

 360 Payroll Integration – We have 360 payroll integration between your retirement and whomever you use for payroll. This means that your staff does not have to waste time entering redundant data in the payroll system. Retirement plan deferral rate changes and more will be automatically fed directly to your payroll provider.

America’s Retirement Plan is now available to join. If you join in 2020 your company can avoid its 2021 audit and Form 5500 Filing!

Accountant’s Pooled Employer Plans:

We work with accounts and certified public accountants to create their own customized Pooled Employer Plan for their clients. We can work with accountants to set-up their own Pooled Employer Plan in three ways:

  • Accountant Plan Sponsor Pooled Employer Plan – In this structure the accountant becomes the Pooled Employer Plan sponsor and takes responsibility, liability, and time to oversee the group plan. The benefits and negatives of acting as the plan sponsor for the PEP are outlined below:
    • Pooled Employer Plan Sponsor Benefits:
      • Control – As the plan sponsor you have control and are in the driver’s seat. The plan sponsor is able to choose the plans vendors, investments, and who comes into the plan. This can be very attractive especially when you are putting your clients into the plan and want to ensure the quality of the experience.
    • Pooled Employer Plan Sponsor Negatives:
      • Fiduciary Liability – Being the plan sponsor of a Pooled Employer Plan opens you up to fiduciary liability from both the administration and the investments of the plan. The PEP sponsor can offload a significant amount of this fiduciary responsibility to the plan vendors. 3(16) co-fiduciaries and 3(38) co-fiduciaries are used by the plan sponsor to share in the administration and investment liability respectively.
      • Time –Running the Pooled Employer Plan can take your time.
    • Outsourced Plan Sponsor Pooled Employer Plan – This program of ours allows the account to build a customized Pooled Employer Plan with an outsourced plan sponsor. The benefits of this program to the accountant is that they do not take the risk, time, or effort to be the PEP sponsor. Instead, an outside party acts as the plan sponsor. This method allows for full customization of the plan. It looks and feels to the clients of the accounting firm like their plan but in fact is sponsored by someone else. The downside to this structure is that the accountant does loose some control.
    • White Labeled / Co-branded America’s Retirement Pooled Employer Plan – This structure allows the accountant to white label / co-brand the America’s Retirement Pooled Employer Plan. The benefits of this structure are the accountant does not take fiduciary risk, receives the benefit from the large purchasing power in America’s Retirement PEP driving down cost, and can co-brand the material for their clients. The detractors are that it does not allow for the accountant to control the plan.

Financial Advisor Pooled Employer Plans:

We work with financial advisors to create their own customized Pooled Employer Plan for their clients. We can work with financial advisors to set-up their own Pooled Employer Plan in three ways:

  • Financial Advisor Plan Sponsor Pooled Employer Plan – In this structure the financial advisor becomes the Pooled Employer Plan sponsor and takes responsibility, liability, and time to oversee the group plan. The benefits and negatives of acting as the plan sponsor for the PEP are outlined below:
    • Pooled Employer Plan Sponsor Benefits:
      • Control – As the plan sponsor you have control and are in the driver’s seat. The plan sponsor is able to choose the plans vendors, investments, and who comes into the plan. This can be very attractive especially when you are putting your clients into the plan and want to ensure the quality of the experience.
    • Pooled Employer Plan Sponsor Negatives:
      • Fiduciary Liability – Being the plan sponsor of a Pooled Employer Plan opens you up to fiduciary liability from both the administration and the investments of the plan. The PEP sponsor can offload a significant amount of this fiduciary responsibility to the plan vendors. 3(16) co-fiduciaries and 3(38) co-fiduciaries are used by the plan sponsor to share in the administration and investment liability respectively.
      • Time –Running the Pooled Employer Plan can take your time.
    • Outsourced Plan Sponsor Pooled Employer Plan – This program of ours allows the financial advisor to build a customized Pooled Employer Plan with an outsourced plan sponsor. The benefits of this program to the financial advisor is that they do not take the risk, time, or effort to be the PEP sponsor. Instead, an outside party acts as the plan sponsor. This method allows for full customization of the plan. It looks and feels to the clients of the financial advisor like their plan but in fact is sponsored by someone else. The downside to this structure is that the financial advisor does loose some control.
    • White Labeled / Co-branded America’s Retirement Pooled Employer Plan – This structure allows the financial advisor to white label / co-brand the America’s Retirement Pooled Employer Plan. The benefits of this structure are the financial advisor does not take fiduciary risk, receives the benefit from the large purchasing power in America’s Retirement PEP driving down cost, and can co-brand the material for their clients. The detractors are that it does not allow for the financial advisor to control the plan.

Payroll Company Pooled Employer Plans:

We work with payroll companies to create their own customized Pooled Employer Plan for their clients. We can work with payroll companies to set-up their own Pooled Employer Plan in three ways:

  • Payroll Company as the Plan Sponsor Pooled Employer Plan – In this structure the payroll company becomes the Pooled Employer Plan sponsor and takes responsibility, liability, and time to oversee the group plan. The benefits and negatives of acting as the plan sponsor for the PEP are outlined below:
    • Pooled Employer Plan Sponsor Benefits:
      • Control – As the plan sponsor you have control and are in the driver’s seat. The plan sponsor is able to choose the plans vendors, investments, and who comes into the plan. This can be very attractive especially when you are putting your clients into the plan and want to ensure the quality of the experience.
    • Pooled Employer Plan Sponsor Negatives:
      • Fiduciary Liability – Being the plan sponsor of a Pooled Employer Plan opens you up to fiduciary liability from both the administration and the investments of the plan. The PEP sponsor can offload a significant amount of this fiduciary responsibility to the plan vendors. 3(16) co-fiduciaries and 3(38) co-fiduciaries are used by the plan sponsor to share in the administration and investment liability respectively.
      • Time –Running the Pooled Employer Plan can take your time.
    • Outsourced Plan Sponsor Pooled Employer Plan – This program of ours allows the payroll company to build a customized Pooled Employer Plan with an outsourced plan sponsor. The benefits of this program to the payroll company is that they do not take the risk, time, or effort to be the PEP sponsor. Instead, an outside party acts as the plan sponsor. This method allows for full customization of the plan. It looks and feels to the clients of the payroll company like their plan but in fact is sponsored by someone else. The downside to this structure is that the financial advisor does loose some control.
    • White Labeled / Co-branded America’s Retirement Pooled Employer Plan – This structure allows the payroll company to white label / co-brand the America’s Retirement Pooled Employer Plan. The benefits of this structure are the payroll company does not take fiduciary risk, receives the benefit from the large purchasing power in America’s Retirement PEP driving down cost, and can co-brand the material for their clients. The detractors are that it does not allow for the payroll company to control the plan.