Pooled Employer Plan (PEP):
Ubiquity's Express PEP

(Coming Soon)

Ubiquity's Express PEP: A pooled employer 401(k) plan built for small businesses

Running a business is complicated. Offering a retirement plan doesn’t have to be.

Seeking a set it and forget it approach to sponsoring a retirement plan? For businesses seeking a hands-off option, Ubiquity Express PEP offers an expertly designed and professionally managed plan done for you.


Ubiquity's Express PEP

Save time and avoid getting tied up in retirement plan complexities

As the Pooled Plan Provider, Ubiquity does the heavy lifting for you by:

  • Hiring and monitoring experts to oversee plan investments
  • Taking on the day-to-day administrative responsibilities
  • Automatically enrolling your eligible employees
  • Making sure the plan remains compliant
  • Acting as your plan’s fiduciary

What is a PEP?

An expertly designed and managed employee retirement benefit

A Pooled Employer Plan (PEP) is a retirement plan that allows unrelated businesses to join a single plan that is established and managed by a registered Pooled Plan Provider (PPP). Geared specifically toward small businesses with fewer than 100 employees, the PEP functions the same as a typical 401(k) plan and provides the same benefits and contribution limits, with the added benefit of reducing the fiduciary and administrative responsibilities of the employer.

Small businesses are able to benefit from merging their existing resources to keep costs low while accessing the same investment options and services that larger companies use to maximize retirement fund outcomes.

How is a PEP different from a stand-alone 401(k)?

One size fits most package plan vs. customized plan

A PEP 401(k) can be thought of as a one-size-fits-most package plan, as opposed to a more customized 401(k) plan. PEPs and stand-alone 401(k)s each have their distinct advantages–and understanding your options can help you decide which one is the best fit for your needs.

Looking for a simplified approach?

A one size fits most approach for those who want to get a plan up and running quickly without all the fuss, a PEP provides a cost-effective way for you to help your employees save for retirement—without the complexity or the liability. The trade-off for the convenient turn-key approach is a lack of flexibility when designing your plan.

How much does a PEP cost?

Ubiquity’s Express PEP is priced with small businesses in mind to help you take advantage of all available tax credits. Like all of our small business 401k plans, pricing is easy to understand, with no hidden costs or excess fees.

Looking for flexibility?

If you would like a more tailored solution, a stand-alone 401(k) plan plan might be for you.

Stand-alone 401(k) Plans vs. PEP

Stand-alone 401(k)


Named fiduciary


Pooled Plan Provider

Responsible for the day-to-day administration of the plan


Pooled Plan Provider, with limited tasks by employer

Responsible for filing annual government forms


Pooled Plan Provider

Ability to customize investments


Limited customization

Customizable eligibility and vesting schedules



Flexible matching schedules



Bond coverage obtainment


Pooled Plan Provider

Hiring and managing annual audits of the plan


Pooled Plan Provider

Advantages of Pooled Employer Plans for Employers

By pooling assets into one large plan, employers can achieve economies of scale, significantly reduce their administrative responsibilities, and lower their fiduciary liability.

In addition to making a retirement plan more affordable, advantages of Pooled Employer Plans for employers include:

  • Lower risk

    Employers work with an administrator who accepts fiduciary responsibilities.

  • Time-saving

    Employers needn’t worry about government filings, plan audits, or management duties.

  • White glove service

    The administrator does it all for you, from setup, to IRS form filing, to enrollment.

  • Improved compliance

    A good Pooled Plan Provider will ensure the best possible governance.

  • Tax credits

    The SECURE Act offers financial incentives for the first three years of a new plan.

  • Pricing

    Pooled employers can receive better pricing on investments due to economies of scale.

  • Outcome

    Gain access to high-quality retirement planning options and services that bigger plans receive.

  • Employee sentiment

    Offering your workers a secure future increases employee satisfaction and retention.

Advantages of Pooled Employer Plans for Employees

Benefits of a Pooled Employer Plan for employees include: 

  • Education

    The employee portal provides informative resources to help participants make decisions about their retirement savings.

  • Visibility

    It’s easy for workers to monitor and adjust their financial goals.

  • Services

    Many PEPs come with choice perks, like financial advisor access, open to all employees.

  • Cost

    PEPs feature lower administrative costs, so participants keep more of their money in the plan.

  • Options

    PEPs can offer better options and access to low-cost share classes available to larger plans.

Can I Change From a Traditional 401k to a PEP 401k?

Given the numerous advantages for small businesses and plan participants, many industry analysts predict that the PEP 401k represents the wave of the future for small business retirement plans. Contact Ubiquity for a hassle-free transfer. Once you choose us as your Pooled Plan Provider, we’ll:


  • Amend your single-employer plan to provide for a merger into a PEP
  • Draw up a new plan document
  • Transfer employee census data
  • Transfer assets if necessary
  • Fix any compliance or data issues
  • Assume management duties

With the right PPP, switching from an existing 401(k) to a PEP is a seamless process. The electronic gateway may change, but the plan itself will function the same way and provide the same benefits. Contribution limits remain exactly the same as a typical 401(k) plan, though the employer will enjoy freedom from high costs, fiduciary responsibility, and administrative hassle.

What Is a Multiple Employer Plan?

Multiple Employer Plans (MEP) have been around for years. These retirement plans are often structured as 401(k) plans and are established and administered by a MEP organizer. The MEP is offered to many different employers but is treated as a single plan for administrative and compliance purposes. Rather than every individual employer filing Form 5500 with the Department of Labor (DOL), the MEP files one form on behalf of all employers participating in the plan.

In order to qualify for a MEP, there must be some commonality between the participating enterprises. Often, employers are linked by trade, association, or geographical location.

What Is the Difference Between PEP and MEP?

The Pooled Employer Plan was created in the SECURE Act to provide an alternative to MEPs by:

  • Allowing ANY employer to join a PEP, even if there is no obvious common link
  • Limiting PEPs to the use of a 401(k) plan
  • Requiring that PEPs be sponsored by a PPP that has registered with the DOL and IRS
  • Ditching the “one bad apple” rule that may disqualify all participants if one employer fails compliance

The two types of plans are similar in that the MEP organizer or the PPP becomes responsible for the reporting, compliance, and administration of the plan, rather than the employer.

Additional Pooled Employer Plans SECURE Act Provisions

  • The SECURE ACT allows providers to offer PEP 401(k)s as of January 1, 2021.
  • The SECURE Act provides up to $5,000 in annual tax credits for three years of establishing a new plan.
  • Employers can receive an extra $500 per year for three years if they use auto-enrollment as a feature.
  • While these credits apply to the creation of any 401(k), the savings go further with the economical PEP.

Contact Ubiquity for personalized assistance exploring your options for small business retirement plans, including the newly created Pooled Employer Plans.

Schedule a free consultation to learn more and see if a PEP may be a good fit for your small business.
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Talk to Sales
Schedule a Free Consultation

Contact Support
Visit our Help Center
6am–5pm PT / 9am–8pm ET

© 2024 Ubiquity Retirement + Savings
44 Montgomery Street, Suite 300
San Francisco, CA 94104