Equitable Introduces Innovative 401(k) Pooled Employer Plan
Equitable Launches a Revolutionary 401(k) Pooled Employer Plan
Equitable, a prominent financial services organization and principal franchise of Equitable Holdings, Inc. (NYSE: EQH), has unveiled its new pooled employer plan (PEP) named Equitable Retirement Access. This innovative plan aims to offer small and medium-sized businesses an affordable and efficient workplace retirement solution for their employees.
Understanding Pooled Employer Plans
Pooled Employer Plans are a type of defined contribution plan that allows various unrelated businesses to consolidate their employees’ retirement accounts under a single, professionally managed plan. This streamlined approach significantly reduces the administrative burden associated with managing retirement plans, such as compliance and reporting requirements, and helps mitigate fiduciary risks.
Since the introduction of PEPs by the SECURE Act in 2019, there has been a noticeable effort to bridge the retirement income gap faced by U.S. employees lacking access to retirement benefits. Despite improvements, a staggering more than 40% of small businesses still do not offer retirement plans, mainly due to high costs and complex investment management.
Benefits of Equitable Retirement Access
With the launch of Equitable Retirement Access, small and medium-sized enterprises gain an effective strategy to provide high-quality retirement plans without the typical hassles. This service not only enhances governance and reduces risks but can also result in significant cost savings for employers with over 100 participants.
Jim Kais, Head of Group Retirement at Equitable, highlights the crucial role of small businesses in the U.S. economy. "These enterprises create two-thirds of new jobs over recent decades. However, millions of employees are still without workplace retirement savings options, making it challenging for business owners to attract and retain talented staff. Our new 401(k) PEP offering simplifies the process for small business owners, allowing them to offer their teams a pathway to a secure financial future while alleviating the administrative complexities of managing retirement plans," said Jim.
Importance of Retirement Plans for Employees
Research commissioned by Equitable reveals that the majority of Americans view retirement savings plans as essential. Approximately 80% agree that retirement plans should be accessible to all employees, regardless of the company's size. In fact, over 80% of respondents indicated they would pass on job opportunities that did not include retirement savings options.
Platform and Partnerships for a Seamless Experience
The 401(k) PEP is available through Equitable’s existing Equitable Retirement Vision platform. PlanConnect LLC, one of Equitable's affiliates, serves as the recordkeeper for the Equitable Retirement Access. Pension Plan Specialists will provide comprehensive services as the pooled plan provider, while SWBC Retirement Plan Services will function as the investment fiduciary. Additionally, Plan Notice LLC will oversee notice delivery services to ensure seamless communication with participants.
Equitable's Commitment to Retirement Solutions
Equitable has a long-standing history in the Group Retirement sector, partnering with school districts, municipalities, not-for-profit organizations, and small to medium-sized businesses to provide a range of tax-deferred investment and retirement solutions, including 401(k), 403(b), and 457(b) plans catering to employee needs.
This commitment is further solidified by Equitable's impressive history of servicing over 1.2 million clients and its wide profession network that ensures comprehensive support for workplace retirement solutions.
About Equitable
Equitable, a key franchise of Equitable Holdings, Inc. (NYSE: EQH), has been a leading financial services provider in America since 1859. The company is dedicated to securing the financial well-being of its clients, offering advice, protection, and retirement strategies tailored for individuals, families, and small businesses alike. With more than 8,000 employees and financial professionals, Equitable proudly serves over three million clients nationwide.
Equitable Advisors, Equitable Financial Life Insurance Company, and Equitable Distributors, LLC, collectively form Equitable's brand for retirement and protection services. With a focus on financial advice and innovative solutions, Equitable remains committed to helping clients navigate their retirement needs effectively.
Frequently Asked Questions
What is a pooled employer plan (PEP)?
A pooled employer plan (PEP) is a type of retirement plan that allows unrelated businesses to collectively offer retirement benefits to their employees under a single plan, simplifying administration and compliance.
How does Equitable Retirement Access benefit small businesses?
Equitable Retirement Access provides small businesses with a cost-efficient way to offer retirement plans, reducing administrative burdens and potentially saving costs, especially for larger groups.
Why is retirement plan access crucial for employees?
Access to retirement plans is vital for employees as it enables them to save towards retirement, helping to secure their financial future and enhancing job satisfaction and retention.
What partnerships are involved in Equitable's 401(k) PEP?
Equitable’s 401(k) PEP involves partnerships with PlanConnect LLC for record-keeping, Pension Plan Specialists as a pooled plan provider, and SWBC Retirement Plan Services for investment fiduciary responsibilities.
How can businesses learn more about Equitable's offerings?
Businesses can learn more about Equitable’s retirement solutions by visiting their official website, where they provide detailed information about available services and contact options.
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