Pooled retirement plans cross $5 billion at multiple providers seven years after the Secure Act

Forty to fifty hours a year is one working week of an HR person's time, plus a day. That is the saving Advisor Upside attributes to dropping the mandatory annual audit an employer would otherwise face above 100 employees ^[8][13]. "Another thing that employers find attractive in PEPs is the elimination of the mandatory annual audit that's required when you exceed 100 employees," said Rodney Loesch, partner at LifeGoals Strategies Group ^[7].

The 83% satisfaction figure comes from The Standard's own research, published as it became the most recent provider to pass $5 billion ^[4][3]. The complement is 17%, roughly one participating employer in six, in a survey run by the firm being rated ^[14].

Advisors told Advisor Upside that PEPs suit clients whose primary goal is simplicity and ease of use, assuming the pricing is reasonable, and that clients more concerned with control and customization are likely better served by a traditional 401(k) ^[12]. Pricing is the condition attached to that recommendation, and the report does not include fee levels for any provider ^[15]. "There are 300-plus providers out there, and they've all got a different approach, fee structure and investment philosophy," said Steve Chappell, assistant vice president of retirement plan sales at The Standard ^[5].

The cost of leaving appears once, as an anecdote. "There is less customization when it relates to the plan design and investment offerings, though, and vesting schedules are typically standardized across the pool. In one case, a business owner decided they wanted more investment flexibility, and getting out of the plan was a hassle, so that's something to keep in mind," said Georgia Lord, head of financial planning at Corbett Road Wealth Management ^[9].

There is a third route, and it changes who is buying. "We've also helped some of the biggest RIAs create an in-house PEP that utilizes their own investment philosophy, for example, so that's an approach to keep in mind, as well," Chappell said ^[10]. An advisory firm that builds its own pool sets the fund menu and the fee schedule itself, and stops shopping among the 300-plus ^[5].

Crossing $5 billion measures the provider's scale, not what a 30-person employer pays ^[2]. In my view the two figures to get in writing before signing are the all-in per-participant fee and what it costs to exit, because the audit hours are a saving on HR labour and the fee is a saving or a cost on participant balances ^[8]. The counter-case is that standardization is exactly what makes a pool cheap, so the missing customization and the friction Lord describes are the price of the discount ^[9]. Per-participant pricing showing a pooled plan beating a standalone 401(k) at 30 or 50 employees would settle the first question, and evidence that employers move between pools routinely would retire the second.