OABA Introduces New Retirement Benefit for OABA Members

OABA members now have access to a Pooled Employer Plan (PEP) designed to simplify the management of a company-sponsored 401(k) plan while reducing administrative responsibilities and fiduciary risk.

A PEP operates much like a traditional 401(k), but allows multiple employers to participate under one pooled plan structure. By bringing employers together, the plan can provide access to professional plan management, streamline administrative requirements and, in many cases, reduce plan costs.

Benefits of the OABA Pooled Employer Plan

Participating employers may benefit from:

• Reduced administrative burden through professional plan administration and recordkeeping
• Reduced fiduciary responsibility, with key plan responsibilities handled by the Pooled Plan Provider and ERISA 3(38) investment manager
• Professional investment management, including selection and ongoing monitoring of the plan's investment options
• Simplified annual requirements, including Form 5500 filing handled at the plan level
• Potential cost savings, particularly for plans currently subject to an annual audit
• Payroll integration options to help streamline contribution and participant data submission

Is a PEP Right for Your Company?

OABA members with an existing 401(k) plan may be able to transition their plan into the PEP. Plans with at least 15 participants and $100,000 in annual cash flow meet the Pooled Plan Provider's minimum requirements.

A review of your current 401(k) plan can help determine whether joining the OABA Pooled Employer Plan could reduce costs, administrative work or fiduciary responsibilities for your company.

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Questions? Visit oaba.net/retirement_benefits for more information or email [email protected].