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WHAT IS A Pooled Employer Plan (PEP)?

A PEP is a retirement plan among independent businesses that are not commonly owned or affiliated ("Participating Employers"), who want to share the costs of providing a workplace retirement savings plan for their employees - and reduce their administrative burdens by engaging third-party professional fiduciaries.

WHO IS THE Pooled Plan Provider (PPP)?

A PPP is the group that sponsors & maintains a Pooled Employer Plan, for the benefit of Participating Employers. A PPP is the named Plan Sponsor and 3(16) Plan Administrator, who appoints the underlying service providers for the PEP.

How It Works

Offering a workplace retirement savings plan is most often done with the best of intentions, yet carries a heavy burden of accountability as a fiduciary. A PEP assembles a team of outsourced professional fiduciary service providers to manage your company’s retirement plan.

Your Outsourced Fiduciary Team

Prosper Retirement Partners

Pooled Plan Provider

The PPP serves as the named fiduciary, as defined under ERISA Section 402(a). The PPP is the fiduciary responsible for processing participant claims & appeals, as well as being responsible to obtain the annual audit of the PEP on behalf of all Adopting Employers.

3(16) Fiduciary Administrator

As the named fiduciary under ERISA Section 3(16), the Fiduciary Administrator is responsible for the day-to- day operations of your 401(k) plan. Furthermore, the 3(16) serves as the fiduciary responsible for processing participant loan & distribution requests as well as making beneficiary determinations. Additionally, the 3(16) is responsible for procuring the required ERISA Fidelity Bond and the timely filing of the annual Form 5500 information returns for the PEP. So, overall, the named 3(16) Fiduciary Administrator is required to perform all the functions necessary to maintain your plan’s ongoing compliance – relieving all Adopting Employers of these burdens.

Fi401k Advisors

3(38) Investment Manager

The designated Investment Manager under ERISA 3(38), it is the fiduciary responsible for the selection and monitoring of the available investment options - in accordance with the PEP’s established Investment Policy Statement (IPS). The 3(38) fiduciary is also responsible for ensuring that it is accessing the most cost-effective share classes of every investment vehicle, including the collection of any available revenue sharing dollars for the benefit of the Plan. Finally, the 3(38) fiduciary is responsible for managing the model allocation portfolios offered to all employee- participants of Adopting Employers.

Plan Concierge

Your Plan Concierge plays a vital role in supporting Adopting Employers, providing strategic plan design consulting and tactical operational assistance. The Plan Concierge will also assist with satisfying your due diligence programs and fiduciary oversight functions.

Your Initial Responsibilities

  • Evaulate Platform
  • Determine Costs are Reasonable
  • Monitor PEP Service Providers

Your Ongoing Responsibilities

  • Managing Employee Census
  • Timely Submission of Payroll & Data
  • Validate year-end data for annual compliance testing

Benefits of the Prosper PEP

  • Outsource fiduciary responsibilities
  • Reduce Plan Administration obligations
  • Eliminate need for individual ERISA Fidelity Bond
  • Eliminate requirement for individual Form 5500
  • Eliminate potential for annual plan audit
  • Easy & efficient online plan establishment
  • Convenient employee onboarding process
  • Access to institutional share classes


  • Evaluate Platform
  • Review PEP Service Providers
  • Determine Costs Are Reasonable


  • Manage & Update Employee Census
  • Timely Submission of Payroll Contributions & Data
  • Validate year-end data for annual compliance testing