Advisors List Reduced Fiduciary Risk, Administrative Burden for Growing PEP Interest
A growing number of financial advisors are considering pooled employer plans (PEPs), as more value streamlined administration strategies and reduced fiduciary risk.
Findings from Pentegra Retirement Services’ report, “Advisory Perspectives on Pooled Employer Plans: Trends and Outlook,” found that advisors see PEPs as a feature that can deliver scalable governance while addressing concerns around administrative and fiduciary risk.
“PEPs are no longer being evaluated solely as a product innovation—they are being recognized as a structural solution to the realities of today’s retirement plan environment,” said Carlo Guerrera, vice president, Sales and Key Accounts at Pentegra. “Advisors are prioritizing consistency, defensibility, and professionalized fiduciary oversight, and PEPs are uniquely positioned to deliver on those expectations.”
According to the findings, over 80% of respondents listed fiduciary risk mitigation as a primary influencer shaping their views of PEPs, and another 80% believe that using the features “significantly or moderately reduce administrative burden.” The reduction not only brings efficiency gains, but it also improves accuracy, consistency, and a reduced likelihood of operational failures, reports Pentegra.
Of advisors with clients who use PEPs or ERISA 3(16) fiduciary services, 75% have reported “measurable” improvements in overall plan quality. All respondents to the survey suggested that having a single, integrated fiduciary partner, along with pooled plan provider (PPP) services, 3(16) fiduciary oversight, and compliance expertise is important to their practice.
Pentegra’s research identifies a driving shift in this industry: PEPs are gaining momentum. Originally introduced in the SECURE Act of 2019 to help small businesses offer retirement benefits, the features expanded to 403(b) plans in 2022 under SECURE 2.0.
Since then, a growing number of organizations have launched their own PEPs for retirement plans. This month, Equitable launched a 403(b) PEP aimed for nonprofit plans, while Ascensus and OneDigital in March announced two new pooled employer plans designed to reduce administrative burden.
More companies are moving towards the features as businesses look to offer retirement plans without administrative complexity. A 2025 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.
Last year, Aon announced that its PEP, which serves over 130 employers and over 1,000 eligible employees, surpassed $5 billion in live and committed 401(k) assets since it launched in 2021.
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.