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PEP Rally! Explaining the Excitement for Pooled Employer Plans, New York University Review of Employee Benefits and Executive Compensation

September 2020

The SECURE Act allows for the creation of a new type of qualified retirement plan, the pooled employer plan or (PEP), beginning on January 1, 2021. While it includes the framework necessary for pooled plan providers (PPPs) to begin establishing and operating PEPs, the SECURE Act left unanswered many legal and practical questions about PEPs.

Morgan Lewis partners Michael Richman and Gregory Needles and associate Michael Gorman authored an article that provides relevant background on the history of open multiple employer plans, culminating in the SECURE Act’s introduction of PEPs; outlines the law governing PEPs as we understand it today (i.e., absent guidance from the regulators); introduces open questions relevant to PEP stakeholders; and digs into practical PEP design questions confronting aspiring PPPs. The article serves as a touchstone for PPPs preparing to bring PEPs to market, employers considering whether to adopt PEPs, and other PEP stakeholders seeking clarity on this new area of the law. 

Read the full New York University Review of Employee Benefits and Executive Compensation article >>