What is a Pooled Employer Plan (PEP)?

A Pooled Employer Plan (PEP) allows multiple businesses to participate in a single, professionally managed retirement plan. By pooling employers together, a PEP reduces administrative burden, lowers costs, and allows businesses to delegate fiduciary responsibilities while still offering a high‑quality retirement benefit to employees. For additional information on the services we provide, please see our Form ADV Part 2A.

How does a PEP differ from a traditional single-employer plan?

With a PEP, plan administration and investment oversight are centralized and handled by professionals. Employers are not responsible for selecting investments, managing compliance testing, or coordinating audits. In a traditional single‑employer plan, these responsibilities typically fall on the company, requiring more time, oversight, and fiduciary involvement. For additional information on the services we provide, please see our Form ADV Part 2A.

Is a PEP right for my company?

A PEP may be a good fit if your business wants to offer a competitive retirement benefit while minimizing administrative effort and fiduciary risk. It’s especially beneficial for companies that prefer a streamlined, cost‑efficient solution without dedicating internal resources to plan management.

Who manages the investments in a PEP?

Lutz Financial serves as the ERISA 3(38) investment fiduciary for the plan, meaning we are responsible for selecting, monitoring, and managing the investment lineup. This allows employers to delegate investment‑related fiduciary responsibility while maintaining confidence that the plan is professionally managed. For additional information on the services we provide, please see our Form ADV Part 2A.

What advantages do employees receive from a PEP?

Employees gain access to professionally managed investments, clear and simplified investment choices, and financial wellness resources designed to support long‑term retirement success. Digital tools and education help employees understand their options and make confident, informed decisions.

Lutz Financial Pooled Employer Plan 401k

A Modern Retirement Plan for Your Business

The Lutz Financial Pooled Employer Plan (PEP) allows businesses of all sizes, industries, and locations to come together and adopt the benefits of one employer retirement plan. The PEP offers the flexibility to implement plan features that fit your organization while limiting the risk, cost, and administrative burden associated with an individual custom plan. Smaller plans get access to diversified investments and prominent providers. All plans can offload time-consuming administrative tasks.

Administered by industry professionals and adopted by various companies in the Midwest, Lutz Financial’s PEP provides a retirement plan solution to save you time, reduce expenses, and assist employees in reaching their financial goals.

Is a PEP right for my business?

Employer Benefits

+ Delegate Fiduciary Liability
+ Free-Up Resources
+ Cost-Efficiencies for Employer & Employees
+ Digital Access to Plan Functions & Information
+ Easy Account Set-Up
+ Payroll Integration
+ Investment Management
+ Automated Participant Registration
Employee Benefits

+ Full-Function Participant Website & Call Center (English & Spanish)
+ Educational Materials
+ Financial Wellness Resources
+ Mobile App
+ Streamlined Investment Options
+ Risk-Based Model Portfolios
+ Support from CFP® Practitioners
Fiduciary Risk Mitigation

Fiduciary investment duties are outsourced to Lutz Financial, which serves as an ERISA 3(38) investment fiduciary.

Do any of the below statements resonate with you?

+ I have concerns over potential fiduciary risk.

+ I wish to delegate investment decisions to an investment manager.
Time Savings

Adopting employers are relieved of most plan administrative duties, allowing more time to focus on their business.

Do any of the below statements resonate with you?

+ I don’t have the time to dedicate to running a plan.

+ I currently sponsor a plan but am looking to outsource time-consuming activities.
Cost-Efficient

Costs are spread across a larger participant and asset base, reducing the expenses for each employer adopting the plan.

Do any of the below statements resonate with you?

+ I’ve been reluctant to sponsor a retirement plan due to cost.

+ I need a plan for my employees but would like to reduce audit costs and plan responsibilities.

How does the employer's role differ by plan type?

	Pooled Employer Plan	Single-Employer Plan
Selects Pooled Plan Provider	Y	N
Named Fiduciary [402(a)]	N	Y
Operational Fiduciary [3(16)]	N	Y
Fund Selection and Monitoring	N	Y
Creates and Adopts Investment Policy Statement	N	Y
Selects Investment Manager	Y	Y
Selects Plan Trustee	Y	Y
Consults on Plan Design	N	N
Plan Design Edits	Y	Y
Reviews/Approves/Signs Off on Plan Documents	Y	Y
Reviews/Signs/Files 5500	N	Y
Reviews/Approves/Signs Off on Compliance Testing/Distributions/QDROs	N	Y
Monitors Plan Eligibility	N	Y
Beneficiary Tracking	N	Y
Prepares/Approves Required Notices/Reports	N	Y
Compiles/Completes Year-End Census Data	Y	Y
Submits Timely and Accurate Payroll/Plan Contributions	Y	Y
Selects/Monitors Service Providers	Y	Y
Selects/Works with Plan Auditors	N	Y
Manages Participant Communications/Education	N	Y
Conducts Investment Meetings	N	Y
Monitors/Benchmarks the PPP	Y	Y

Pooled Employer Plan
- Selects Pooled Plan Provider
- Named Fiduciary [402(a)]
- Operational Fiduciary [3(16)]
- Fund Selection and Monitoring
- Creates and Adopts Investment Policy Statement
- Selects Investment Manager
- Selects Plan Trustee
- Consults on Plan Design
- Plan Design Edits
- Reviews/Approves/Signs Off on Plan Documents
- Reviews/Signs/Files 5500
- Reviews/Approves/Signs Off on Compliance Testing/Distributions/QDROs
- Monitors Plan Eligibility
- Beneficiary Tracking
- Prepares/Approves Required Notices/Reports
- Compiles/Completes Year-End Census Data
- Submits Timely and Accurate Payroll/Plan Contributions
- Selects/Monitors Service Providers
- Selects/Works with Plan Auditors
- Manages Participant Communications/Education
- Conducts Investment Meetings
- Monitors/Benchmarks the PPP
Single-Employer Plan
- Selects Pooled Plan Provider
- Named Fiduciary [402(a)]
- Operational Fiduciary [3(16)]
- Fund Selection and Monitoring
- Creates and Adopts Investment Policy Statement
- Selects Investment Manager
- Selects Plan Trustee
- Consults on Plan Design
- Plan Design Edits
- Reviews/Approves/Signs Off on Plan Documents
- Reviews/Signs/Files 5500
- Reviews/Approves/Signs Off on Compliance Testing/Distributions/QDROs
- Monitors Plan Eligibility
- Beneficiary Tracking
- Prepares/Approves Required Notices/Reports
- Compiles/Completes Year-End Census Data
- Submits Timely and Accurate Payroll/Plan Contributions
- Selects/Monitors Service Providers
- Selects/Works with Plan Auditors
- Manages Participant Communications/Education
- Conducts Investment Meetings
- Monitors/Benchmarks the PPP

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What is a Pooled Employer Plan (PEP)?
A Pooled Employer Plan (PEP) allows multiple businesses to participate in a single, professionally managed retirement plan. By pooling employers together, a PEP reduces administrative burden, lowers costs, and allows businesses to delegate fiduciary responsibilities while still offering a high‑quality retirement benefit to employees. For additional information on the services we provide, please see our Form ADV Part 2A.
How does a PEP differ from a traditional single-employer plan?
With a PEP, plan administration and investment oversight are centralized and handled by professionals. Employers are not responsible for selecting investments, managing compliance testing, or coordinating audits. In a traditional single‑employer plan, these responsibilities typically fall on the company, requiring more time, oversight, and fiduciary involvement. For additional information on the services we provide, please see our Form ADV Part 2A.
Is a PEP right for my company?
A PEP may be a good fit if your business wants to offer a competitive retirement benefit while minimizing administrative effort and fiduciary risk. It’s especially beneficial for companies that prefer a streamlined, cost‑efficient solution without dedicating internal resources to plan management.
Who manages the investments in a PEP?
Lutz Financial serves as the ERISA 3(38) investment fiduciary for the plan, meaning we are responsible for selecting, monitoring, and managing the investment lineup. This allows employers to delegate investment‑related fiduciary responsibility while maintaining confidence that the plan is professionally managed. For additional information on the services we provide, please see our Form ADV Part 2A.
What advantages do employees receive from a PEP?
Employees gain access to professionally managed investments, clear and simplified investment choices, and financial wellness resources designed to support long‑term retirement success. Digital tools and education help employees understand their options and make confident, informed decisions.

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About

Pooled Employer 401(k) Plans

A Modern Retirement Plan for Your Business

Is a PEP right for my business?

Employer Benefits

Employee Benefits

Fiduciary Risk Mitigation

Time Savings

Cost-Efficient

How does the employer's role differ by plan type?

Pooled Employer Plan

Single-Employer Plan

Pooled Employer Plan

Single-Employer Plan

Why the Lutz Financial Pooled Employer Plan?

Let's Talk

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News & Insights

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Should my construction business join a 401(k) Pooled Employer Plan (PEP)?

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Lutz Financial Celebrates 25 Years of Service

Frequently Asked Questions

What is a Pooled Employer Plan (PEP)?

How does a PEP differ from a traditional single-employer plan?

Is a PEP right for my company?

Who manages the investments in a PEP?

What advantages do employees receive from a PEP?

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