Insights | 03.31.21
Few Advisors Working MEP/PEP Market… for Now
The majority of advisors in the DC space (82 percent) report that they do not work with Multiple Employer Plans (MEPs) and Pooled Employer Plans (PEPs) in any capacity. This according to the Secure Retirement Institute, which asked 256 advisors (who had sold at least one DC plan in the past year) about their understanding of MEPs, engagement with the MEP market and their perceptions of what the SECURE Act’s changes would be and mean to their businesses. Just 9 percent of advisors in the survey say that they advise a MEP(s); the slightly more common engagement with MEPs for advisors is to have a current client who belongs to a MEP, likely a result of happenstance rather than an active MEP practice. But the survey also found that many advisors are interested in learning more about MEPs and PEPs. In a post-SECURE Act marketplace, MEPs and PEPs represent one of the most evident business development opportunities. In fact, 72 percent of advisors surveyed said they would like to learn more, and only 9 percent said they have no interest in the market.
Read the full article on 401(k) Specialist.