Why do employers choose PEPs?
PEPs are attractive to many employers because they can reduce plan expenses by pooling assets to achieve economies of scale for investments. They also eliminate redundant expenses through a single plan document, 5500 filing, and plan audit.
PEPs minimize the fiduciary burden of the employer because the law requires each plan to be sponsored by a Pooled Plan Provider (PPP). There are certain tasks that still fall to the employers as plan sponsors, and that’s where Smart’s platform rises above others. Our technology helps them fulfil these obligations, calculating how much needs to be contributed and when, and ensuring the proper funds are sent on time