HUB Retirement and Private Wealth has launched a pooled employer plan (PEP) for small businesses with fewer than 100 employees.
The HUB Retirement Select PEP allows smaller employers to offer 401(k) retirement plans to their employees, while reducing costs and complexity. The plan works in partnership with Sallus Retirement, an independent Pooled Plan Provider (PPP) that will serve as the lead fiduciary, and Ubiquity Retirement + Savings, an independent retirement plan provider and recordkeeper.
“HUB is committed to helping expand the opportunity for all Americans to save for their retirement,” said Joe DeNoyior, president of HUB Retirement and Private Wealth, in a statement. “With HUB Retirement Select PEP, clients have another option to offer a competitive retirement plan to their employees that ultimately helps them attract talent and help employees achieve financial security and overall financial wellness.”
A PEP allows small businesses to join a retirement plan along with other employers, so they can receive the typically lower pricing and higher levels of service usually reserved for larger companies. In PEPs, the third-party PPP shoulders the fiduciary responsibility and most of the administrative work, so small employers don’t have to.
PEPs have been growing in popularity recently. The SECURE Act of 2019 allowed PEPs to include employers from unrelated industries. It also established small-business tax incentives for establishing a retirement plan, which were then increased with SECURE 2.0. Multiple recordkeepers and firms have announced PEP options sine the new rules were put in place.
“This PEP puts offering a retirement plan within reach of small businesses while simplifying the complexities of plan management and fiduciary risk normally associated with providing one, enabling our clients to focus more on their core business,” DeNoyior said.
HUB also offers single employer HUB Retirement Select options for small businesses as well as the HUB Retirement Select 100+ PEP, for employers with more than 100 employees.
For more information on HUB Retirement Select PEP, click here.
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