The legislation also has a lesser-known provision that expands the availability of pooled employer plans (PEP). Whether your business already has a 401(k), or you need to start one, you should be considering a PEP.
Why? Because a PEP can save you and your employees a lot of money — and potential headaches — by allowing you to pool retirement plan assets with other companies and share an administrator to oversee the funds.
“We’ve seen a big jump in the number of clients moving to our retirement plan administrative services over the past year, thanks to PEPs,” said Michael Majors, a vice president of human resources services at the payroll processing firm Paychex. The firm recently announced that it had passed the 100,000 milestone for the number of 401(k) clients it serves, and Majors credits PEPs as a big factor.