The Advantages for Financial Advisors of Proposing a 401K PEP to Clients

Posted: Jun 21, 2021 10:13:56 AM

PEPs for Financial Advisors

As a financial advisor, your goal is to keep your clients happy. That means identifying the best retirement plan option. And in 2021, that may involve presenting to them the 401K PEP (pooled employer plan) -- a new retirement plan option built especially for small and medium-sized businesses.

The 401K PEP is a great option for small and medium-sized companies because it’s cost effective and efficient. Here's a rundown of the advantages of proposing a 401K PEP company retirement plan for your clients as a financial advisor.

PEPs are Cost Effective and Not Restrictive

PEPs are excellent retirement plans for employers who are interested in either starting plans or switching from existing plans. The PEPs are not restricted by industry, giving companies more retirement options at a lower cost by combining purchasing power. 

401K PEP Company Retirement Plan(s) Reduce Workloads

The major benefit of the GGA 401k PEP is that it can reduce liabilities and workloads. 

It improves outcomes through full 3(38) investment fiduciary protection. Why? Because with a PEP, significant fiduciary responsibility ends up being shifted from the employer who sponsors a 401k to a pooled plan provider (PPP) who sponsors the PEP. 

The other huge benefit: the employer no longer has to deal with the administrative burden of maintaining the plan. The PPP signs the 5500. That means from an operational level, the time and liability are severely reduced.

Clients Are Interested in PEPs

Yet another reason to offer your clients PEPs as a retirement plan option is that many companies today are interested in them. As a financial advisor, you want to be the one to offer it and continue to lead the client relationship long term.

How We Can Help a Financial Advisor Interested in Offering Pooled Employer Plans

We take pride in supporting strong relationships between financial advisors and their clients. If you're interested in offering your clients the advantage of a 401K PEP, we'll make the process seamless.

We can help you to effectively propose PEP company retirement plan(s) and then guide your clients through the process of setting up these pooled employer plans. With our help, you can improve your clients' retirement plan participation and decrease their costs.  

Get in touch with us today to learn more about how we can help you to better serve your clients and thus buttress your bottom line in the years ahead. 


Learn More   

New call-to-action