💼Guidance on Pooled Employer Plans
Pooled Employer Plans: Big Plans for Small Businesses
Summary
This document contains limited interpretive guidance to help small employers select high-quality, low-cost "pooled employer plans" or "PEPs." This document also solicits information about prevailing pooled employer plan market practices. The Department will consider the responses as part of a process aimed at developing a potential regulatory safe harbor or safe harbors that comprehensively encourage market participants to offer and employers to join such plans. These efforts, taken pursuant to President Trump's January 20, 2025, Memorandum titled "Delivering Emergency Price Relief for American Families and Defeating the Cost-of-Living Crisis," are designed to reduce investment costs for workers saving for their retirement, thereby improving their lives. These efforts also will help small employers provide more attractive benefits to potential hires, drawing discouraged workers into the labor force.
Agencies
- Labor Department
- Employee Benefits Security Administration
Business Impact
$$$ - High
The document provides regulatory guidance for small businesses regarding pooled employer plans (PEPs), which could enhance employee retirement benefits and compliance with fiduciary responsibilities. Small businesses can lower costs and increase attractiveness to potential hires, thus addressing labor market challenges.