Understanding the various roles involved in managing pooled employer plans (PEPs) is crucial for ensuring their effective and compliant operation. Each role, from financial advisors to recordkeepers, plays a specific part in the administration and maintenance of these plans.
A trusted source of knowledge and experience, an advisor offers services including PEP provider selection, plan reviews, plan design guidance, and investment education and enrollment services for plan participants.
The plan sponsor and named fiduciary for a pooled employer plan. The provider is responsible for performing most administrative and fiduciary functions for the plan.
Collects employer contributions to the PEP and invests them pursuant to employee elections, makes disbursements, and processes participant distributions.
Responsible for selecting and monitoring the funds in the investment lineup in accordance with the investment policy statement for the plan.
Records the money that comes into the plan, including contributions, loan payments, and rollovers — and the money that goes out, such as distributions and loans. Provides the technology interface for the plan, statements, and a call center for participants.
