AssetMark, a provider of extensive wealth management, technology and consulting services for independent financial advisors, today announced the launch a Pooled Employer Plan (PEP) that is now available on its platform.
The AssetMark PEP is a 401k plan that allows business owners to pool their retirement assets with those of other employers and to outsource the fiduciary and operational duties involved in sponsoring a plan.
A key feature of the SECURE Act of 2019, PEPs were created to help close the retirement plan coverage gap. According to a 2017 Cerulli Report, 51% of employers with less than 50 workers do not have access to a retirement plan, while more than half of Americans either own or work for a small business. A PEP allows smaller employers to band together into a single plan so they benefit from economies of scale and potential lower costs while gaining access to diversified investments and enhanced fiduciary support normally available only to large corporate plans.
“The professionally managed investments and cost-saving advantages of a PEP allow small businesses to help their employees access the benefits of a tax-advantaged retirement plan,” said AssetMark Senior Vice President and Head of Retirement Services Cathy Clauson. “During a time of such unprecedented challenges, we are pleased to offer AssetMark PEP to our advisors and their business owner clients as a way to expand retirement coverage and help more people save for a secure financial future.”
AssetMark PEP is designed for:
- Small to medium-sized business (SMB) owners typically with less than $25M in plan assets;
- Employers that are not currently sponsoring a retirement plan for their employees because of time-consuming administrative duties and the risks of fiduciary responsibility;
- Employers that are currently sponsoring an existing 401k plan or existing SEP or SIMPLE IRA but wish to gain greater fiduciary protection or offload administrative duties on a 401k plan.
“In a competitive marketplace, we believe that this offering will be of great benefit to SMBs as they grow their businesses and seek to retain top talent,” said Clauson. “Outsourcing the administrative and fiduciary duties of a 401k plan saves small businesses time and resources and provides peace of mind while they focus on running their business.”
Through AssetMark, Inc., its investment advisor subsidiary registered with the SEC, Concord, Calif.-based AssetMark operates a platform that comprises fully integrated technology, personalized and scalable service and curated investment platform solutions. AssetMark had $84.6 billion in platform assets as of June 30, 2021.
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• The Best Qualified Default Investment Alternative for Pooled Employer Plans