News | 01.27.21
Principal Counts on Advisors to Get Word Out on PEPs
As Principal Financial Group rushes to market its new pooled employer plan (PEP) to sponsors of small 401(k) plans, it is looking to advisors to take a leading role in raising awareness of the option. It already has gotten 14 of the largest broker-dealer firms to make its PEP available to their roughly 7,200 advisors, said Joni Tibbetts, vice president of product management in retirement and income solutions at Principal. Principal's decision to move aggressively into the fledgling PEP market was driven by the fact that it is a top provider of plans under $10 million, the segment of the plan sponsor market with the most to gain from a pooled plan, Tibbetts said. Principal's new pooled employer plan, which launched on Jan. 1, was specifically built for small plan sponsors with up to $10 million in assets as well as employers with no plan at all. The PEP packages all the plan administration, investment management, trust and other services into a single offering.
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