Aon PEP Hits $1 Billion in Plan Assets and Commitments
Aon said Wednesday that its pooled employer plan (PEP) “has reached $1 billion in U.S. 401(k) assets and commitments since its inception on Jan. 1, 2021.”
“‘All-in’ participant fees can be less than half of those paid in traditional 401(k)s.”
Claiming more than 40 employers providing 401(k) benefits to over 30,000 employees, participating industries include biotech and life sciences, manufacturing, services, consumer products, energy, technology, and transportation.
“Participants are benefiting from a higher performing, more efficient 401(k) program, with employees able to accumulate up to 11% more retirement savings during their career due to lower fees compared to typical 401(k) benefit programs,” the company said. “Within the Aon PEP, ‘all-in’ participant fees can be less than half of those paid in traditional 401(k)s, according to data from Brightscope and current Aon PEP costs.”
Aon added that the combined scale in PEPs helps lower plan costs, including record-keeping and investment management fees. Beneficiaries also have easier access to investment tools and education services to better prepare for retirement.
“The benefits of transitioning to a pooled employer plan—half the costs, reduced time commitment from corporate staff, improved governance and high-quality retirement planning options—have become material for employers and their employees,” Rick Jones, senior partner in Aon’s Wealth Solutions, said in a statement. “We expect more than half of U.S. employers to merge their traditional 401(k)s into pooled employer plans by 2030.”
The company quoted Jasmine Simkins, director of human resource operations for West Marine, a marine retailer that joined the Aon PEP in 2021. She said her company has saved about 65% of its 401(k) program costs, which goes back into what they can offer employees.
“Our crew members are saving, we’re saving, and it makes it easier to offer bigger and better things that will help us with retention and getting the right talent in place,” Simkins said. “Not only does it help us as a company, but it’s helping crew members understand their investments, and they’re having a better experience with the program.”
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of 401(k) Specialist and Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots. Experienced financial services content executive specializing in creative new media delivery. He joined the American Retirement Association in 2023 as Chief Content Officer, overseeing communications for the organization, as well as its sister organizations.
