The PEP pool got a little bigger today, as American Trust, a full-service provider of retirement solutions to small- and mid-sized plan sponsors, announced it has partnered with TAG Resources to introduce a new Pooled Employer Plan.
The SECURE Act, introduced in late 2019, included a provision outlining the PEP structure as a solution for smaller employers to provide cost-efficient workplace retirement plans, paving the way for multiple, unrelated firms to come together to gain access to a more competitive plan landscape and increase their purchasing power.
“We work with professionals in all aspects of the retirement industry, including financial advisors, distribution partners, payroll providers and RIAs and we heard a common theme in our discussions with them: they all want to help solve the retirement crisis facing Americans today,” said Micah DiSalvo, Chief Revenue Officer at American Trust. “The American Trust PEP offering is an innovative and important step toward safeguarding the nation’s retirement future. We are proud to be on the forefront of solving this challenge.”
Designed to achieve a decreased fiduciary risk to the employer, American Trust Company acts as the PEP’s Trustee and assumes the role of 3(38) Investment Manager, and AT Retirement Services, LLC, an American Trust affiliate, acts as the Pooled Plan Provider (PPP). TAG performs certain 3(16) responsibilities as the third-party administrator.
In addition to increased purchasing power, American Trust said the new PEP offers other benefits, including:
- Simplified plan administration that offloads 90% of a plan’s administrative duties.
- Potentially reduced plan expenses, including lower administrative fees, filing fees and audit costs.
- Customizable to the employer’s needs and participant goals, including both active and passive investment lineups and plan design features that can be catered to the participant makeup.
“The pandemic has cast a light on the immense responsibility offering a workplace retirement benefit holds, and small and large plans alike are seeking opportunities to outsource the associated services,” said Troy Tisue, President of Knoxville, Tenn.-based TAG Resources. “In reality, many plans are not being managed effectively, and it ends up hurting the participant. The American Trust PEP makes a workplace benefit more accessible, comprehensive and—importantly—customizable to best position employees for a strong retirement future.”
With offices in Dubuque, Iowa, Lexington, Ky., and Memphis, Tenn., American Trust is a subsidiary of EdgeCo Holdings, which along with its other subsidiaries, administers over 100,000 retirement plans. One hundred percent of TAG’s business is in the pooled plan structure.
“We are offering small employers a competitive advantage in the marketplace, backed by the power of the industry that EdgeCo and its subsidiaries embody. The PEP offering allows us to expand our focus to even more businesses, facilitating unmatched access and scale for small businesses wishing to offer a retirement benefit to their employees,” added DiSalvo.
For more information on the American Trust PEP offering visit www.americantrust.com.
SEE ALSO:
- TAG Advisors Launches ‘Private Label’ PEP
- Few Advisors Working MEP/PEP Market… For Now
- How to ‘PEP Up’ Your Retirement Plan Business
Veteran financial services industry journalist Brian Anderson joined 401(k) Specialist as Managing Editor in January 2019. He has led editorial content for a variety of well-known properties including Insurance Forums, Life Insurance Selling, National Underwriter Life & Health, and Senior Market Advisor. He has always maintained a focus on providing readers with timely, useful information intended to help them build their business.
