Reduced Administrative Burden
Nydia’s team handles plan setup, testing, annual filings, and participant notices, allowing employers to focus on their business, not paperwork.
What Is a Pooled Employer Plan (PEP)?
A Pooled Employer Plan (PEP) is a retirement plan that allows multiple unrelated businesses to participate in a single, professionally managed 401(k) structure. Instead of each company maintaining its own plan, participating employers (“adopting employers”) join a shared plan administered by a Pooled Plan Provider (PPP).
By combining resources under one plan, businesses can reduce administrative burdens, strengthen fiduciary oversight, and often achieve lower investment and compliance costs than they could independently.
PEPs make it easier for small and mid-sized businesses to offer competitive, compliant retirement benefits without the complexity of managing a standalone plan.
How PEPs Work
Within a PEP, the Pooled Plan Provider (PPP) takes on most of the responsibilities traditionally handled by the plan sponsor (business owner), including plan administration, compliance testing, participant communications, and fiduciary oversight.
Simplifying 401(k) Management for Growing Businesses
- Maintain flexibility to set eligibility, matching, and vesting terms for their own employees.
- Enjoy streamlined reporting and reduced liability for day-to-day plan operations.
- Gain access to institutional-level investment options and professional plan governance.
At Nydia Retirement Solutions, our in-house actuaries and experienced administrators ensure every adopting employer’s participation remains compliant, efficient, and aligned with their business goals.
Benefits of a Pooled Employer Plan
Who Should Consider a PEP?
Whether you’re an employer looking to simplify plan management or an advisor helping clients navigate complex retirement options, PEPs centralize administration, reduce testing burdens, and deliver compliant, professionally managed 401(k) solutions.
Small and Mid-Sized Businesses
Companies that want to offer a high-quality 401(k) plan without the administrative complexity or fiduciary liability of managing one independently.
Professional Service Firms
Medical, legal, engineering, and accounting practices that value cost-efficient, compliant retirement benefits to attract and retain top talent.
Multi-Location or Franchise Operations
Organizations with multiple offices or franchise locations that want consistent retirement plan features and simplified reporting across all sites.
Case Story: A Multi-Office Dental Group Adopts a PEP
Client Profile:
A dental group with three offices and 42 total employees wanted to provide retirement benefits for staff but lacked the resources to manage multiple 401(k) plans. Each office had different payroll systems and staffing levels, creating administrative complexity.
Challenge:
The owners needed a plan that:
- Simplified compliance and recordkeeping across locations.
- Provided competitive, low-cost investment options.
- Shifted fiduciary responsibility away from the business owners.
Solution:
Nydia Retirement Solutions recommended joining a Pooled Employer Plan designed for professional medical practices. Through the PEP structure, the dental group received centralized administration, consolidated annual filings, and consistent plan features across all offices.
Result:
- Reduced administrative workload by more than 60%.
- Lowered plan expenses through shared economies of scale.
- Achieved full IRS and DOL compliance under a single Pooled Plan Provider.
- Improved employee engagement with simplified enrollment and education tools.
Today, the group continues to enjoy predictable plan costs and professional oversight, while employees benefit from a well-managed 401(k) with competitive investment options.
Why Choose Nydia Retirement Solutions as Your Pooled Plan Provider
Since 1999, Nydia has delivered precision, compliance, and personal service in every plan we administer. With in-house actuaries and decades of experience, we ensure Pooled Employer Plans operate with the same care and accuracy that define all our retirement solutions.
We handle the details, from implementation to testing, so you can focus on running your business, knowing your retirement plan is in expert hands.
Ready to Explore a PEP for Your Business?
If you’re ready to simplify your 401(k) administration, reduce fiduciary risk, and deliver a retirement plan your employees will value, Nydia can help.
Reach out to our team today to learn how joining a Pooled Employer Plan can enhance your retirement benefits and strengthen your company’s financial future.