Hub Launches New PEP for Small Employers

Companies with 100 or fewer employers have a new option for providing 401(k) retirement benefits.

Hub Retirement and Private Wealth, a division of Hub International Ltd., on Wednesday announced the launch of HUB Retirement Select PEP, a pooled employer plan specifically designed for employers of that size.

Sallus Retirement, the independent pooled plan provider, will serve as the lead fiduciary and Ubiquity Retirement + Savings will be the recordkeeper/administrator, according to the announcement.

The PEP will be a new option for Hub’s national network of retirement plan and wealth advisers.

“Expanding the ability for employees at small businesses to save for retirement through their employer is part of our overall mission,” says Patrick Rieck, director of financial services at Hub. “The Hub Retirement Select PEP powered by Sallus is one more option that we make available to Hub International clients as part of our Hub Retirement Select small business program. We educate wealth advisers about how this program can help them effectively and efficiently meet the needs of their small business owner.”

By participating in Hub Retirement Select PEP, businesses benefit from economies of scale, sharing costs of the plan with other participating employers. Utilizing a PEP eliminates the need for a distinct retirement plan sponsorship and enables quick access to scaled pricing and services, according to the Chicago-based Hub. Similar to large plan sponsors, the firms enrolled in a PEP can benefit from dedicated investment professionals overseeing employee investment choices.

Hub Retirement Select joins Hub’s Retirement Select 100+ PEP, launched last year for employers with more than 100 employees. The advisory also offers single-employer Hub Retirement Select retirement plans for small businesses.

HUB’s latest PEP comes as advisers and providers see potential for continued PEP growth in 2024. On Tuesday, The Standard announced the company has surpassed $1 billion in pooled employer retirement plan assets under administration.

“Our PEP strategy is a natural extension of our approach to standalone plans, which is based on our strong customer service proposition, industry-leading fiduciary responsibility programs and emphasis on providing easy-to-implement solutions for employers,” Ted Schmelzle, second vice president of retirement plan services at The Standard, said in a statement.