Principal Announces New Pooled Employer Plans to Help More Businesses Provide Workers Access to Retirement Benefits
The Setting Every Community Up for Retirement Enhancement (SECURE) Act is paving the way for unrelated employers to participate in a single, pooled employer plan (PEP) beginning next year. In support of this legislative action, Principal Financial Group® announced it has teamed up with other key service leaders to provide Principal EASE, a uniquely designed PEP that combines integrated retirement plan administration, customer service and investment management capabilities.
“The workplace is such an effective place to increase access to retirement savings plans”
Principal is taking responsibility as the Pooled Plan Provider (PPP). With its backing of financial strength and industry expertise, Principal will oversee the operation of the PEP, helping to ensure the plan meets regulatory requirements and helping employers reduce administrative work and fiduciary risk. This packaged fiduciary solution will be available for financial professionals to offer employers in 2021.
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“The workplace is such an effective place to increase access to retirement savings plans,” said Jerry Patterson, senior vice president of Retirement and Income Solutions at Principal®. “Our position as a leading service provider of retirement plans in the U.S. opens the door for Principal to provide input on legislative efforts, which remains focused on helping increasing access to retirement plans for all American workers.”
A novel approach to simplifying plan administration and fiduciary risk for employers
Only 55 percent of workers employed by small businesses (1-99 workers) have access to retirement benefits.1 To help increase access to more American workers, Principal® EASE will deliver a professionally managed approach – streamlining decisions for employer plans from start-up to $10 million in assets under management (AUM). Beginning next year, financial professionals will be able to offer this robust program that is powered by the latest in tech innovation, service integration and data security.