Equitable Financial Launches Pooled Employer Plan for Small Business Retirement Solutions

Equitable Unveils Pooled Employer Plan to Support Small Businesses’ Retirement Needs

Equitable Financial has launched a new pooled employer plan (PEP) called Equitable Retirement Access.SM This initiative aims to address the retirement planning needs of small and medium-sized businesses, which often struggle to provide employee retirement benefits due to high costs and complex administrative requirements. The introduction of PEPs, as established by the SECURE Act in 2019, enables unrelated businesses to unite their employees' retirement savings into a single plan managed by a third-party provider. This approach not only simplifies the administrative workload for businesses but also reduces the fiduciary risks associated with managing retirement funds.

Equitable Retirement Access is designed to be scalable and cost-effective, specifically targeting the barriers that prevent over 40% of small businesses from offering retirement plans. By leveraging the strengths of pooled plans, Equitable provides a robust solution that enhances plan governance and mitigates risks. The new offering promises potential cost savings for employers, particularly those with over 100 participants, thereby making it an attractive option for businesses looking to improve their employee benefits package without incurring significant additional costs. Jim Kais, Head of Group Retirement at Equitable, highlights the critical role of small businesses in the U.S. economy, noting that they account for two-thirds of new job creation.

Research commissioned by Equitable underscores the increasing demand for retirement plans among the workforce. The survey reveals that approximately 80% of Americans believe all employers should offer retirement options, and a similar percentage would reject job offers from companies that do not provide such plans. This growing expectation places additional pressure on small businesses to adapt and compete for talent. The Equitable Retirement Vision® platform facilitates access to the 401(k) PEP, with PlanConnect LLC acting as the recordkeeper. In addition, Pension Plan Specialists will serve as the pooled plan provider and administrator, while SWBC Retirement Plan Services will handle investment fiduciary duties, ensuring a comprehensive framework for retirement plan management.

Equitable’s new PEP not only supports small businesses in offering competitive benefits but also contributes to the overall financial well-being of employees, fostering a more secure retirement landscape. As the company takes significant steps to alleviate the challenges faced by smaller enterprises, it stands poised to enhance the retirement readiness of millions of American workers.