Compass Pooled Employer Plans (PEPs)

WHAT IS A PEP?

A PEP is a Pooled Employer Plan. It is a defined contribution plan (a 401(k) Profit Sharing Plan) that allows unrelated employers to participate in a single plan, rather than each company sponsoring its own plan.

It’s a smart solution tor many organizations, as it provides a practical and cost-effective retirement plan that might have been out of reach otherwise. By pooling participants across like-minded organizations, plans can access expert guidance and resources to help navigate an increasingly complex regulatory landscape with confidence.

What are the benefits of a PEP?

A Pooled Employer Plan (PEP)

Reduces your workload with a professional 3(16) Plan Administrator

• 3(16) Plan Administrator responsible for day-to-day functions and Plan Notices
• 3(16) is the Primary contact and assists with administrative questions
• Handles Loans, Distributions, Hardships, and can work directly with participants on these items

Reduces Your Liability

• PPP is named as the Plan Sponsor
• 3(38) selects and monitors the investment lineup

Simplifies Operation of the Plan

• Plans gain scale of operational efficiencies
• If administration errors occur, the correction process is covered

Compass PEPs:
See the Compass difference in action with our innovative Pooled Employer Plans.

Compass PEP Advantages

• Provides fiduciary protection from 3(38), 3(16), and PPP
• Includes Compass 360, LLC as listed 402(a) Plan Administrator
• Significantly reduced administrative burden
• Plan Sponsor responsibilities delegated to the PPP
• Eliminates the Audit Fee each year
• Ensures you are working with top-tier providers
• Affords the ultimate luxury… peace of mind

Is the Freedom to Retire PEP right for your company?

The best candidates are those seeking to…

• Increase their Fiduciary protections
• Reduce their administrative work
• Reduce their annual audit costs
• Simplify their plan
• Leverage an investment lineup selected and monitored by a 3(38) manager
• Increase technology offerings and coverage for plan participants