Aon PEP Assets Reach $5B
Aon on Monday announced that its pooled employer plan (PEP) division had surpassed $5 billion in live and committed 401(k) assets since its start in 2021.
The Aon PEP now serves over 130 employers and over 1,000 eligible employees.
Aon leaders note how a rise in popularity with the PEP market has fueled growth with the offerings. An April report from The Standard found that 83% of employers expressed satisfaction with their PEP experience, and 26% felt an increase in satisfaction after joining a PEP. Most employers attribute their satisfaction to ease of plan management and cost savings.
“PEPs are transforming how organizations approach retirement benefits,” said Rick Jones, senior partner in Wealth Solutions for Aon and leader of the firm’s pooled employer plan offering. “Employers see immediate advantages from these pooled platforms, including lower costs, significantly reduced administrative workload and improved governance, all of which ultimately deliver better experiences for their teams and enhanced outcomes for employees.”
Aon touts its PEP offering in providing lower fees and access to high-quality investment options. It also notes a rise in optimism among participant behaviors, including an 11% increase in enrollment after one year and a 5% increase in the amount saved by existing and new participants after 24 months.
According to Aon, clients who offer PEPs have experienced reduced work capacities. On average, Aon PEP employers have decreased their 401(k) workload by 50% to 75% after joining the plan.
“We are witnessing a fundamental shift in how retirement benefits are delivered in the U.S.,” said Jennifer Brasher, head of Wealth Solutions in North America for Aon. “Unlike other PEPs in the market today, Aon is at the forefront of this transformation, setting a new standard for scale. As more organizations embrace PEPs, we’re proud to help lead the industry forward – empowering employers of all sizes to offer sustainable retirement security while adapting to the evolving needs of their workforce. This is just the beginning of a new era for workplace retirement benefits.”
SEE ALSO:
PEP Adoption Skyrockets Employer Satisfaction with Their Advisor, Retirement Plan
Aon PEP Tops $2 Billion Plateau
Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with nearly a decade of experience and a passion for telling stories and reporting news. She is originally from Queens, New York, but now resides in Denver, Colorado.
