Lincoln Financial Group is launching its FlexPEP(k) and FlexPEP(b), a pooled employer plan (PEP) solution for 401(k) and 403(b) plans.
Independent fiduciary services provider Smart Retirement Solutions, Inc. will serve as the pooled plan provider while Envestnet will work as the 3(38)-investment provider, managing the investment fund menu for both solutions.
Past research from Cerulli Associates shows that as employer size decreases, their likeliness in offering a retirement plan also falls. Adopting a service could offload time and cost challenges, adds Lincoln Financial.
“We’re seeing an uptick in the adoption of group plan solutions as employers look to streamline their retirement plan administration, minimize costs and enhance fiduciary protection,” said Matt Condos, senior vice president of Retirement Plan Services Product Solutions at Lincoln Financial Group. “While the SECURE Act and SECURE 2.0 were catalysts for PEP offerings, an opportunity remains for businesses and not-for-profits who are interested in getting more positive outcomes from their retirement benefits. In addition to providing these 401(k) and 403(b) solutions, we are committed to educating plan sponsors of all sizes about the value of PEPs.”
Among the services provided by both FlexPEP(k) and FlexPEP(b) include a full-service model, access to in-plan guaranteed income solutions and group plan discounts, and qualified default investment alternative (QDIA) options.
“We’re excited to expand our relationship with Lincoln in providing PEPs as solutions in the 401(k) and 403(b) marketplace,” said Tina Anstett, head of Fiduciary Services of Smart Retirement Solutions. “Our mission is to simplify retirement plan sponsorship for employers, and PEPs offer a streamlined, cost-effective solution that aligns perfectly with that goal.”
Sean Murray, head of Envestnet Workplace, adds, “As the 3(38) investment provider for these two new solutions, we leverage our core competencies of fiduciary guidance and investment due diligence to help plan sponsors with their investment selection and monitoring. With Envestnet’s industry comprehensive and industry leading Wealth Management Platform, we aim to empower employers to support their employees in achieving their retirement goals.”
The new offering comes as more firms invest in small business retirement plan solutions. This week, Alera Group revealed a new partnership with The Standard on their PEP offering, and in February, HUB Retirement and Private Wealth announced its launch of a PEP aimed at small businesses with less than 100 employees.
SEE ALSO:
- Alera Adds The Standard to PEP Offering
- HUB Announces Pooled Employer Plan Option
- Aon PEP Tops $2 Billion Plateau
Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with over six years of experience and a passion for telling stories and reporting news. Amanda received her degree in journalism and government and politics at St. John’s University. She is originally from Queens, New York, but now resides in Denver, Colorado with her partner. In her free time, Amanda enjoys running, cooking, and watching the latest drama show.
