Transamerica White Paper Shines Light on Traditional and New Pooled Employer Plans for Retirement
Transamerica today announced the availability of a new white paper that examines the key differences between employer-sponsored retirement plan types, including multiple employer plans and new pooled employer plans, which will become available on January 1, 2021. The white paper provides retirement plan sponsors and financial consultants with information they need to evaluate which type of retirement plan may be best for their organizations.
Traditionally, an organization would create a single employer plan to benefit its employees or participate in a multiple employer plan. However, the SECURE Act allows for other arrangements that can reduce an employer’s administrative and fiduciary burden. These plans can facilitate for economies of scale and other benefits usually associated with large retirement plans.
To help organizations understand and make an informed decision on what type of plan to create or join, the white paper lays out the advantages of:
- Single-Employer Plans;
- Group Negotiated Contracts (sometimes known as “exchanges”);
- Multiple Employer Plans (MEPs);
- “Open” MEPs (a subset of the MEP marketplace); • Pooled Employer Plans (PEPs); and
- Other group options.
Well-known ERISA attorneys Alison Cohen and Ilene Ferenczy of the Ferenczy Benefits Law Center authored the white paper.
“Transamerica advocates for retirement plans that offer American workers a way to save for their retirement. We have a long history of being at the forefront of exploring new opportunities to help people save for retirement,” said Kent Callahan, CEO of Workplace Solutions at Transamerica. “We are providing this white paper to help employers make the best decision for their organizations and their employees. We remain firmly committed to helping people reach their financial goals so that they can retire with confidence.”
With a history that dates back more than 100 years, Transamerica is recognized as a leading provider of life insurance, retirement and investment solutions, serving millions of customers throughout the United States. Recognizing the necessity of health and wellness during peak working life, Transamerica’s dedicated professionals work to help people take the steps necessary to live better today so they can worry less about tomorrow. Transamerica serves nearly every customer segment,
providing a broad range of quality life insurance and investment products, individual and group pension plans, as well as asset management services. In 2019, Transamerica fulfilled its promises to customers, paying more than $50 billion in insurance, retirement, and annuity claims and benefits, including return of annuity premiums paid by the customer. Transamerica’s corporate headquarters is located in Baltimore, Maryland, with other major operations in Cedar Rapids, Iowa. Transamerica is part of the Aegon group of companies. Based in the Netherlands, Aegon is one of the world’s largest providers of life insurance, pension solutions and asset management products, operating in more than 20 markets worldwide. For the full year of 2019, Aegon managed over $1 trillion in revenue generating investments. Transamerica is not affiliated with the Ferenczy Benefit Law Center. For more information, please visit www.transamerica.com.
Before adopting any plan, you should carefully consider all the benefits, risks, and costs associated with a plan. Information regarding retirement plans is general and is not intended as legal or tax advice. Retirement plans are complex, and the federal and state laws or regulations on which they are based vary for each type of plan and are subject to change. In addition, some products, investment vehicles, and services may not be available or appropriate in all workplace retirement plans. Plan sponsors and plan administrators may wish to seek the advice of legal counsel or a tax professional to address their specific situations.