Streamlining Your 401(k): Why Now Is the Right Time to Move into a PEP

Thinking of transitioning your company’s retirement plan into a Pooled Employer Plan (PEP)? Here’s how the process works—and why it’s easier than you think.

Why Businesses Are Transitioning to PEPs

For many employers already offering a 401(k) plan, the idea of switching to a Pooled Employer Plan (PEP) can seem overwhelming.

Concerns often arise about whether employees might lose benefits or whether the transition will disrupt operations.

In reality, moving to a PEP is far more straightforward than most businesses expect—especially with the right partner guiding the process.

Step 1: Review Your Current Plan

The transition begins with a comprehensive review of your existing 401(k) plan, including:

Investment lineup and associated fees
Compliance history and audit results
Plan design features (eligibility, vesting, and employer match)

This assessment highlights areas where joining a PEP can deliver immediate improvements in cost, efficiency, and oversight.

Step 2: Customize Plan Design

Employers then make key design decisions, such as:

Employer contribution levels
Matching formulas
Vesting schedules

While PEPs consolidate fiduciary and administrative responsibilities, employers retain flexibility to align the plan with their company culture and budget.

Step 3: Execute the Transition

Once the design is finalized, your plan documents are updated and replaced with those of the PEP.

The Pooled Plan Provider (PPP)—in this case, Apex Consulting—then:

Assumes fiduciary responsibility
Handles all legal and regulatory filings
Coordinates with payroll providers for seamless integration

Employees’ existing accounts, balances, and investment elections transfer directly into the pooled plan without disruption. Clear communications ensure participants understand what’s changing and what remains the same.

Step 4: Enjoy Simplified Compliance

A key benefit of transitioning to a PEP is that the PPP assumes responsibility for ongoing compliance and reporting, including:

Form 5500 filings
ADP/ACP testing
Audit requirements

This significantly reduces the employer’s administrative workload and fiduciary exposure.

The Results: Lower Costs, Less Risk, and Happier Employees

On average, the transition process takes six to eight weeks and delivers long-term value through:

Lower fees
Reduced liability
Simplified administration
Enhanced employee experience

With SECURE Act 2.0 expanding plan flexibility—such as student loan matching and automatic enrollment in new plans—PEPs are more attractive than ever.

The Apex Advantage

At Apex Consulting, we provide:

Dedicated transition teams
Employee education and onboarding support
Ongoing fiduciary oversight and compliance management

Our goal is to make the move to a PEP seamless and stress-free, helping employers achieve lower costs, stronger compliance, and greater retirement readiness for their teams.