Equitable Launches 403(b) PEP Aimed for Nonprofits
Equitable has launched a pooled employer plan (PEP) intended for 403(b) plans.
The financial services organization announced its Equitable Retirement Access ERISA 403(b) pooled employer plan, designed for employees of nonprofit organizations. It builds on Equitable’s 401(k) PEP for small and medium-size businesses and expands on the firm’s Retirement Access Suite.
PEPs were first introduced in the SECURE Act of 2019, designed to help small business plans offer retirement benefits for employees. SECURE 2.0, passed in 2022, further expanded access by introducing PEPs in 403(b) plans.
Equitable notes that employees of nonprofit organizations have traditionally been underserved with reduced benefits. According to a study by the San Jose State University, only 21% of nonprofits provide retirement benefits to their employees. This is likely due to financial and administrative demands, notes Equitable.
“Nonprofit leaders pour everything into the people and communities they support, but most don’t have the resources or time to manage a retirement plan,” said Jim Kais, head of Group Retirement at Equitable. “They recognize how important these benefits are for attracting and keeping talent, and this new solution gives them a practical way to offer a high‑quality retirement plan while we handle the details behind the scenes.”
The 403(b) PEP will be available through the Equitable Retirement Vision platform for nonprofit employers establishing a new 403(b) plan or evaluating a transition from an existing provider. PlanConnect LLC, an Equitable affiliate, will serve as recordkeeper, while MAP Retirementiii will act as the pooled plan provider, third‑party administrator, and 3(16) administrative fiduciary. SWBC Retirement Plan Services will serve as the 3(38)-investment fiduciary and Plan Notice LLC will manage notice delivery services.
Through its Group Retirement business, Equitable partners with school districts, municipalities, not-for-profit entities and small-to-medium-sized businesses to provide tax-deferred investment and retirement solutions, including 401(k), 403(b) and 457(b) plans for their employees.
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.