ABOUT THE PEP

We Believe Every Plan Sponsor Deserves To Experience Fiduciary Freedom®

Our Pooled Employer Plan (PEP) offers an advantage for businesses seeking a streamlined and cost-effective 401(k) retirement solution. By participating in a PEP managed by Freedom Fiduciaries®, businesses benefit from reduced administrative burdens and fiduciary responsibilities. The PEP structure allows multiple employers to join a single, comprehensive plan, significantly lowering costs through negotiated plan rates. With our Pooled Plan Provider (PPP) serving as the plan sponsor, administrator, and named fiduciary, employers enjoy peace of mind knowing that all administrative and compliance tasks, such as mailing participant notices, signing and filing IRS Form 5500, tracking participant eligibility, and handling payroll integration, are all managed by a professional. Additionally, our dedicated support includes advanced participant experiences, personalized financial wellness programs, and flexible plan designs tailored by specialists. The inclusion of Freedom Fiduciaries as a 3(38) Investment Manager ensures the diligent selection and monitoring of investment options, further protecting employers from investment-related liabilities. This holistic approach not only enhances the retirement readiness of participants but also alleviates the time and effort required from employers, allowing them to focus on their core business objectives.

  • Why would someone say yes to a PEP?

  • Less Administrative Work: A pooled plan provider (PPP) handles much of the plan's administration, reducing the burden on employers.
  • Cost Savings: Pooling resources can lower plan fees and investment costs due to economies of scale.
  • Fiduciary Relief: The PPP assumes many fiduciary responsibilities, reducing compliance risks for employers.
  • Better Investment Options: PEPs often offer diverse and cost-effective investment choices.
  • Flexibility: PEPs offer flexible plan options while managing complexity.
  • Scalability: PEPs can adapt as companies grow, providing a scalable solution.

What is a PEP?

A pooled employer plan (PEP) is a 401(k) retirement plan that allows unrelated businesses to participate in one plan managed by a pooled plan provider (PPP).

What is the PPP?

A PPP is the plan sponsor, plan administrator, and named 402(a) fiduciary for a Pooled Employer Plan. As the fiduciary, they take on all of the annual and administrative requirements of the entire PEP.

What is a recordkeeper?

A recordkeeper is the service provider responsible for managing the assets of your retirement plan. Participants use the recordkeeper’s online platform to view their accounts and make changes.

What is an investment manager?

This is the role Freedom Fiduciaries takes on within the PEP. An investment manager is a 3(38) fiduciary responsible for selecting and monitoring investments.

Schedule a Complimentary 15 Minute Consultation

Scheduling a brief 15-minute complimentary consultation allows us to review your current operations, plan structure, and any challenges you’re facing. This quick session provides an opportunity to explore how a Pooled Employer Plan (PEP) can streamline your retirement plan administration, reduce costs, and offer enhanced investment options. By identifying your specific needs, we can demonstrate how a PEP, along with additional benefits, can address your pain points and improve your overall plan effectiveness.

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Top 5 Benefits of a PEP

#1 - Reduced Administrative Burden

Reduced Administrative Burden

Joining a PEP significantly reduces the administrative tasks required from the individual employer. Instead of managing various administrative responsibilities such as plan design, compliance testing, and record-keeping, these tasks are handled by the PEP provider. This centralized management simplifies the complexities typically associated with running a retirement plan. Employers can then redirect resources previously dedicated to plan administration towards core business activities, enhancing operational efficiency.

#2 - Mitigated Fiduciary Liability

Mitigated Fiduciary Liability

One of the primary advantages of participating in a PEP is the significant reduction in fiduciary liability. In a PEP, fiduciary duties are largely shifted from the employer to the pooled plan provider, who is responsible for the selection and monitoring of service providers and investments. This arrangement provides plan sponsors with a layer of protection against the fiduciary risks associated with managing a retirement plan, which can be especially daunting for employers with limited expertise in this area.

#3 - Regulatory Compliance

Regulatory Compliance

PEPs are managed by professional entities that are well-versed in the regulatory requirements of ERISA and the IRS. This expertise ensures that the plan remains compliant with all current laws and regulations, reducing the risk of costly errors or penalties that could arise from non-compliance. For plan sponsors, this outsourced compliance not only reduces legal risks but also alleviates the need to constantly monitor changing regulations and adjust plan operations accordingly.

#4 - Access to Low-Cost Institutional Investments

Access to Low-Cost Institutional Investments

PEPs provide access to institutional-class investments that may otherwise be unavailable to individual employers due to minimum investment requirements or cost barriers. By pooling the assets of multiple employers, PEPs can achieve the scale necessary to qualify for these institutional investment options, which typically feature significantly lower expense ratios compared to retail investment choices. For example, a PEP might offer an S&P 500 fund with an expense ratio as low as 0.01%, a rate much lower than what individual small to medium-sized businesses could secure on their own. This access not only enhances the potential for better investment returns by reducing the drag of higher fees but also diversifies the investment options available to plan participants.

#5 - Lower Plan and Investment Fees

Lower Plan and Investment Fees

PEPs benefit from economies of scale, which can lead to lower investment and administrative costs compared to standalone plans. By pooling assets with other employers, plan sponsors can leverage increased bargaining power to negotiate lower fees for plan services such as auditing, legal, record-keeping, and investment management. This cost efficiency makes PEPs particularly appealing to small and mid-sized businesses that might otherwise face prohibitive fees when offering individual plans. Additionally, the typical audit fees ranging from $10,000 to $15,000 required for standalone plans are generally not applicable in a PEP, adding further to the cost savings for participating employers.

What makes a PEP different

A Pooled Employer Plan (PEP) differs from a standard 401(k) in that it allows multiple unrelated businesses to join a single, comprehensive plan managed by a Pooled Plan Provider (PPP), thereby reducing administrative burdens and costs. Unlike standard 401(k) plans where each employer acts as the plan sponsor and administrator, in a PEP, the PPP takes on these roles, including fiduciary responsibilities. This structure provides businesses with enhanced fiduciary protection, simplified compliance, and cost efficiencies through shared resources and negotiated plan rates.

  • Your Current 401(k) Responsibilities

  • Upload Payroll Files
  • Year-End Data Collection
  • 402(a) Fiduciary duties and Liability
  • 3(16) administrative duties and liability
  • 3(38) Investment Liability
  • Manage and maintain a fidelity bond
  • Form 5500 preparation and signature
  • Track eligibility
  • Notify participants of eligibility
  • Plan audit (if applicable)
  • Distribute participant notices
  • Annual retirement plan review
  • Quarterly investment monitoring and due diligence
  • Year-end testing
  • Monitor regulatory changes
  • Forms 945, 1096, and 1099 preparation
  • Conduct ongoing employee education
  • Monitor payroll deferrals
  • Track contribution limits
  • Track catch-up contributions
  • Qualified domestic relations order (QDRO) approval
  • Approve/deny loan requests
  • Process distributions upon termination
  • Manage de minimis force outs

  • Your Responsibilities in the PEP

  • Upload payroll files (payroll integration available)
  • Year-end data collection

Tax Credits*

Up to $5,000 per year

While the original SECURE Act increased tax credits for small employer plans, SECURE 2.0 significantly expands these credits, including provisions that could cover the costs of operating and administering a small plan for up to three years. We are available to discuss these changes with you and confirm the credits available for your specific situation.

*Source: IRS

Schedule a 15-minute Consultation

FREEDOM FIDUCIARIES® TEAM

At Freedom Fiduciaries, our clients are our top priority. With this in mind, we have thoughtfully assembled a team of retirement plan specialists to offer you exceptional service. Our team is devoted to collaborating closely with you to gain a deep understanding of your unique needs and concerns, and to deliver customized solutions to address them. Leveraging our collective experience, we are firmly committed to providing the highest level of service and support to ensure the success of your retirement plan.

Shane Hanson

President and CEO

Biography

Shane Hanson is a distinguished financial professional with a wealth of experience spanning over 12 years in the financial services industry. As the President and CEO of Freedom Fiduciaries™, he leverages his vast knowledge and experience to guide clients towards making informed decisions.

Shane’s accomplishments in the industry prior to starting Freedom Fiduciaries™ are impressive, having successfully consulted more than 2,500 retirement plans in his career. He holds various sales records at multiple recordkeepers, most recently with Empower in 2022.  Most importantly, he is known for his commitment to plan sponsors, participants and his mastery of the retirement plan industry.

Shane’s unwavering dedication to his clients, community, and the financial services industry has earned him numerous accolades, including being named one of the “Top 100 Wingmen” by National Association of Plan Advisors*. He is also a member of professional organizations such as Western Pension and Benefits and created the 401(k) Fiduciary Summit™.

Through his exceptional leadership, vision, and commitment to his clients, Shane has established himself as a respected and accomplished leader in the financial services industry.

Shane’s academic background is just as noteworthy as his professional achievements. He is an alumnus of Chaminade University of Honolulu, graduating magna cum laude with a bachelor’s degree in Communications. During his time at Chaminade, he was a team captain on the basketball team and received all-conference honors.

Beyond his professional life, Shane is passionate about giving back to the community. In 2011, he founded the Freedom Youth Foundation, a non-profit organization that provides sports and financial literacy programs to foster youth.

Shane is also a devoted husband and father to four children, who are the pride of his life. In his free time, Shane loves playing pickleball, basketball, and getting outdoors. He believes family comes first and is committed to maintaining a balanced lifestyle.

*Over 5,000 financial advisors were surveyed by NAPA Net and asked to select the industry’s top wholesalers.

Cristina Hansen, CPFA®

VP, Director of Client Service

Biography

Cristina Hansen is the VP, Director of Client Service, and leads the retirement plan service team, providing guidance and support to ensure the team achieves its objectives. She also identifies new business opportunities, develops proposals, and expands the retirement plan advisory practice.

Cristina graduated from Boise State University with a Bachelor’s in Business Administration, specializing in International Business and Finance. During her time at BSU, she gained valuable experience as a Sales and Marketing Intern for State Farm Insurance and as an Energy Efficient Promoter/Intern for Idaho Small Business Development Center (ISBDC) in the Energy Efficiency Program. After graduation, she worked for Baxter BioScience as a Human Resource Intern in Singapore.

Over the past decade, Mrs. Hansen has specialized in managing retirement plans and providing individual attention to each client’s unique needs and objectives. She understands the complexity of providing a company retirement plan and works to ease the process for both plan sponsors and participants, by providing fiduciary support with plan administration, compliance, and investments. Cristina holds the Certified Plan Fiduciary Advisor (CPFA) designation, Series 65 registration, and Life Insurance License.

Outside of work, Cristina enjoys spending time with her husband and two young children, baking, trying out different foods, and staying active by enjoying the outdoors.

Khristina Conley

Service Associate

Sierra Shindler

New Business Analyst

Zach Albrecht

Software Engineer

Kaleó

Administrative Bot

Freedom Youth Foundation

Our President and CEO, Shane Hanson, established the Freedom Youth Foundation (FYF), a 501(c)(3) non-profit, in November of 2011. The organization has a singular mission: to make a positive impact on the foster youth population in the United States and beyond. Since its inception, FYF has worked with over 25,000 foster youth and has expanded its programs to include sports clinics, financial literacy training, youth mentorship, and the establishment of a scholarship fund. Freedom Fiduciaries dedicates a portion of our annual profits to support the Freedom Youth Foundation.

Learn more about FYF

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    Boise, ID 83702
    (208) 900-4331
    info@freedomfiduciaries.com

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