Pooled Employer Plans


Summary

This practice note discusses the new type of defined contribution retirement plan authorized by the Setting Every Community Up for Retirement Enhancement Act of 2019 (Pub. L. No. 116-94) (SECURE Act) referred to as a "pooled employer plan" (PEP) in which multiple unrelated employers may participate. A PEP is sponsored and operated by a "pooled plan provider" (PPP), also explained in this practice note. The practice note will discuss the background of PEPs; the rules governing PEPs and PPPs under the Employee Retirement Income Security Act of 1974, as amended (ERISA), and the Internal Revenue Code, as amended (IRC); and the advantages and potential drawbacks of PEPs for adopting employers.