The SECURE Act made way for a new era of retirement planning with the introduction of Pooled Employer Plans (PEPs), allowing groups of small, unrelated businesses to come together and share resources. These plans enable small businesses to provide employees with the same level of retirement services that were once reserved for larger companies. Our mission is to provide best-in-class retirement solutions for plan sponsors and small businesses, and the PEP structure is an exciting opportunity to amplify our impact and influence positive retirement outcomes for more individuals. That’s why we partner with industry leading TPAs to offer the American Trust PEP. This offering is flexible, efficient and price competitive, with benefits ranging from increased purchasing power, to simplified plan administration, decreased fiduciary risk and potentially reduced plan expenses.
Written by Micah DiSalvo, Chief Revenue Officer
Why the American Trust PEP?
Small businesses are constantly looking for ways to stand out and draw interest from top talent. With retirement planning at the forefront for many in the current environment, offering a best-in-class workplace retirement plan option can help set an employer apart in the eyes of job candidates.
- The American Trust PEP furthers the competitive edge for businesses through plan design options including automatic enrollment, progressive escalators of savings, safe harbor provisions and managed account solutions, and investment options like passive and active lineups, professionally managed models, collective funds and stable value funds.
- Time is another important consideration for many small businesses, especially those whose roster may not include a dedicated human resources department. From plan setup to administration, monitoring and reporting, the American Trust PEP takes key responsibilities off of employers’ plates. Leveraging this offering, businesses can decrease their admin responsibilities by over 90% vs. sponsoring their own plan.
- At the same time, businesses decrease their fiduciary risk, which is shouldered by American Trust Company as the plan Trustee and AT Retirement Services, LLC, as the Pooled Plan Provider, as well as our TPA partners who will provide certain 3(16) administrative services. Plan participants can rest assured that American Trust follows industry best practices and keeps their best interest in mind.
- The American Trust PEP can also decrease administration fees, including individual audit costs or those associated with filing Forms 5500. On top of that, employers may receive tax credits for implementing PEPs through the SECURE Act, which grants eligible employers up to $5,000 in tax credits annually for the first three years and provides a further credit for using the automatic enrollment feature.
So what does this mean? Businesses can take advantage of all the benefits of the American Trust PEP while potentially saving on plan expenses. To learn more about the American Trust PEP offering and its benefits, please call 1-800-548-2993.
The products and services described in this document are subject to all current and future laws, regulations and service terms. These materials have been provided for discussion and marketing purposes only and are not intended to be legally binding. Actual services provided may vary based on changes in applicable laws and specified contract terms.
American Trust is a marketing name encompassing services offered by AT Retirement Services, LLC, American Trust Company, and/or AT Insurance, LLC. The following affiliates of AT Retirement Services, LLC may provide the services noted. Trust and custody services offered through American Trust Company. Securities offered through Mid Atlantic Clearing & Settlement Corporation, member FINRA/SIPC. Advisory services offered through Mid Atlantic Financial Management, Inc., a registered investment adviser. Sub-custody and trust services offered through Mid Atlantic Trust Company, a nondepository trust company.
Not FDIC Insured | No Bank Guarantee | May Lose Value