Aon and Voya Financial are teaming up to launch a pooled employer plan (PEP) of the type recently authorized by the Setting Every Community Up for Retirement Enhancement (SECURE) Act.
Aon will operate the PEP, while Voya Financial will serve as the recordkeeper for the new plan, which will be available January 1, 2021.
Aon’s leadership says the PEP will relieve employers of many fiduciary duties they have today. Due to the economies of scale, it also has the potential to lower fees for plan participants and provide access to state-of-the-art features that may be difficult for individual employers and fiduciary committees to both assess and access independently, Aon says.
The firm notes that the SECURE Act, which passed into law in December, was designed to encourage broader 401(k) plan participation and greater retirement savings. With the law’s passing, the firm says, employers will no longer need to sponsor their own individual 401(k) plan and absorb the risks and workload associated with that role.
The PEP will utilize Aon Investments USA Inc., Aon’s investment solutions group.
“We are pleased to have Voya as a partner in this initiative to provide the very best in retirement services to PEP members starting in 2021,” says Rick Jones, a senior partner at Aon.
“We believe PEPs will transform the retirement landscape, similar to how 401(k) plans transformed the pension landscape 40 years ago,” adds Paul Rangecroft, North America retirement practice leader for Aon. “We are thrilled to enter this important market and are pleased to provide this plan as a service to employers as they look to increase efficiency, reduce risks and most importantly—create better retirement outcomes for participants.”
More information about the pending launch of the PEP is available on Aon’s website.