New PEP Features Adviser Managed Accounts

Qualified Plan Advisors (QPA) has announced the Qualified Plan Advisors Pooled Employer Plan (QPA PEP), developed in partnership with Newport Group Inc.

The QPA PEP is billed as a new fiduciary-friendly, cost-effective retirement plan solution. According to the firms, the PEP will help advisers who are eager to assist clients in starting up new plans or growing small plans—but it won’t just be limited to small plans.

The firms say the QPA PEP will be available nationwide for employers of all sizes that desire additional fiduciary protections and fewer plan administrative responsibilities. Newport has developed an offering for the plan that provides the cost efficiency central to a PEP, while also accepting the responsibility to conduct many of the tasks that employers wish to get off their desks.

Matthew Eickman, national retirement practice leader at QPA, says getting more employers to sponsor qualified retirement plans means more employees can save for retirement in those plans, which can have a real impact on participants. He notes that the new PEP allows unrelated employers to pool their plan assets to achieve bargaining power that is greater than what they could achieve on their own.

A key unique feature of the QPA PEP is that adviser managed accounts will be offered as part of a hybrid qualified default investment alternative (QDIA) structure. Plan participants also have the option to receive personalized advice through the adviser managed accounts, serving to improve their retirement savings outcomes.