(Please contact your Chamber to determine if they offer this benefit.)
Many small business owners wish they could provide employees with a retirement plan, but are concerned about:
Potential Costs
Lack of time and expertise
Fiduciary responsibilities and liabilities
Thanks to new legislation, small-to-mid-sized employers can now pool together in the same retirement plan, providing affordable benefits similar to some of the largest companies in the country.
Under the SECURE Act, the first significant retirement-related legislation in more than a decade, employers can offer retirement plans to their employees through a Pooled Employer Plan (PEP). A PEP, available January 2021, is a new kind of defined contribution plan similar to the 401(k) plans offered by individual employers, but with many advantages for your business and your employees.
Overview and Advantages of a PEP
In a PEP, employers of all sizes, industries, locations etc. can join together and become a "member employer" through the SOCA Pooled Employer Plan (SOCA PEP). The Newport Group the Pooled Plan Provider (PPP) of the SOCA PEP is responsible for establishment, management, fiduciary oversight and operations of the plan on behalf of the member employers. In the SOCA PEP, member employers can take advantage of:
Cost Efficiencies - Costs are lower because they spread across a larger participant and asset base, thereby reducing the costs for each member of the plan.
Fiduciary Risk Mitigation - Fiduciary duties are outsourced to a plan advisor serving as an ERISA 3(38) investment fiduciary.
Operational Outsourcing - Newport Group is the Pooled Plan Provider (PPP) and assumes many of the administrative burdens on behalf of the member employers including eligibility, beneficiary tracking and plan disbursements.
Increased Focus - Member employers use fewer resources allowing more focus on growing revenues and profits in their business.
Advantages Include:
For Member Employers
402(a) named fiduciary
integrated 3(16) administrative fiduciary
3(38) advisor support services
Integrated trust and custody services
Digital access to all plan functions and information
Payroll contribution tracking and integration
integrated non-qualified plans
For Individual Employee Participants
Full-function participant website and call center
Spanish website
Full suite participant education seminars
Finanical wellness program
Integrated managed account services
To learn more about the SOCA PEP contact Dale Essenmacher, Regional Vice President of the Newport Group at (248) 212-3223 or dale.essenmacher@newportgroup.com
