Pooled
Employer Plan (PEP) from industry leaders supports talent retention
and attraction for business owners with easier access to a
qualified retirement plan and protected income
investments
Today, Lincoln Financial Group (NYSE:LNC) announced it is
enhancing its retirement plan options by launching a pooled
employer plan (PEP), OpenPEP, in collaboration with NPPG Plan
Professionals, an affiliate of National Professional Planning
Group, Inc. (NPPG) and Morningstar Investment Management LLC, a
subsidiary of Morningstar, Inc. OpenPEP offers enhanced
personalization through customized plan design options and
qualified default investment alternatives, and is differentiated in
the market by offering in-plan guaranteed income as an investment
option.
In today’s competitive talent market, it is more important than
ever for businesses to offer a competitive benefits package,
including employer-sponsored retirement plans, to attract and
retain top talent. In fact, nearly three quarters (74%) of
employees at small businesses say that having an employer-sponsored
retirement savings plan is a “must have” or very important when
considering an employer.1 There is also significant consumer
interest in retirement plans that help convert savings into
lifetime income, with more than 70% of retirement plan participants
saying they are interested in an in-plan investment option that
would provide guaranteed income for life.2
“The SECURE Act brought new opportunities for our industry to
help address the retirement plan coverage gap by making it easier
and more cost-effective for employers to offer these critical
savings vehicles to their employees through a PEP,” said Ralph
Ferraro, senior vice president, Retirement Plan Products and
Solutions, Lincoln Financial Group. “Financial security and
guaranteed income are increasingly important for employees, and
through OpenPEP Lincoln is providing small business owners with a
competitive advantage, while giving their employees confidence in a
more secure financial future.”
Personalized Investment Options and Guaranteed Income for
Life
When joining OpenPEP, employers have the flexibility to
personalize their plan with customized plan design options and
qualified default investment alternatives (QDIAs). The target date
solution for OpenPEP is YourPath® target-date plus risk portfolios,
built with BlackRock® iShares. In addition, clients can elect to
use Lincoln PathBuilderSM Income powered by YourPath® or Stadion’s
Storyline Managed Account as their QDIA option. Stadion’s managed
account service offers personalized investment portfolios based on
individual participant factors. OpenPEP also provides the employer
with reduced administrative burden and liability by outsourcing the
administrative and investment fiduciary responsibilities.
Lincoln PathBuilder Income offers a differentiated PEP feature
in the marketplace — in-plan guaranteed income, which enables
participants to protect their savings and know that they will also
last their lifetime.
The Benefits of Joining a PEP
Through the benefit of group purchasing power, employers who
join a PEP can offer a qualified retirement plan for their
employees, with fewer administrative and fiduciary responsibilities
than a traditional plan. This enables business owners to offer this
important benefit without needing to take their focus away from
their day-to-day work of running their business. NPPG, a Pooled
Plan Provider (PPP), acts as the lead sponsor and Morningstar
Investment Management builds and manages the investment lineup of
the PEP as the 3(38) investment provider.
“The shifting of administrative responsibilities and liabilities
along with cost savings as a result of economies of scale are
driving business owners to join a PEP,” said Michael M. Salerno,
founder and CEO of NPPG. “The PEP provides adopting employers the
opportunity to leverage pooled buying power for administrative
costs and other outsourced professional services. By joining
OpenPEP, employers reduce administrative and fiduciary burdens
associated with retirement plan management, thus, allowing the
company to concentrate on strategic growth initiatives while
attracting company talent.”
“Too many working Americans aren’t saving for retirement because
they don’t have access to an employer-sponsored plan, which we
believe is going to have serious economic and social consequences
in the future unless we fix it,” said Brock Johnson, president of
Global Retirement and Workplace Solutions at Morningstar Investment
Management. “We feel strongly that PEPs like Lincoln’s OpenPEP will
help us close this access gap and are excited to be part of the
innovation that is happening in this space.”
Employers get access to a fully integrated recordkeeping
platform and a personalized plan website by joining the PEP, which
gives them access to plan- and employee-specific information as
they keep track of employees’ progress and retirement readiness
scores. And while the government recognizes the PEP as if it were a
single plan, each employer who adopts the plan may select its own
provisions and tailor the plan to help meet the unique goals and
needs of their employee population.
For employees, there are benefits beyond a vehicle to save for
their future — Lincoln WellnessPATH, an online tool, helps savers
get a holistic view of their financial wellness. This personalized,
interactive online tool provides actionable content, one-on-one
support and budgeting tools to help plan participants navigate key
financial topics including spending, saving, debt and
protection.
For more information on OpenPEP, which is available through all
financial professionals who work with Lincoln DirectorSM today,
click here.
About Lincoln Financial Group
Lincoln Financial Group provides advice and solutions that help
people take charge of their financial lives with confidence and
optimism. Today, more than 17 million customers trust our
retirement, insurance and wealth protection expertise to help
address their lifestyle, savings and income goals, and guard
against long-term care expenses. Headquartered in Radnor,
Pennsylvania, Lincoln Financial Group is the marketing name for
Lincoln National Corporation (NYSE:LNC) and its affiliates. The
company had $324 billion in end-of-period account values as of June
30, 2021. Lincoln Financial Group is a committed corporate citizen
included on major sustainability indices including the Dow Jones
Sustainability Index North America and FTSE4Good. Dedicated to
diversity and inclusion, we earned perfect 100 percent scores on
the Corporate Equality Index and the Disability Equality Index, and
rank among Forbes’ Best Large Employers and Best Employers for
Women, and Newsweek’s Most Responsible Companies. Learn more at:
www.LincolnFinancial.com. Follow us on Facebook, Twitter, LinkedIn,
and Instagram. Sign up for email alerts at
http://newsroom.lfg.com.
About NPPG
National Professional Planning Group, Inc. and its affiliate
companies offer full-service employee benefit consulting,
retirement planning, actuarial consulting. ERISA fiduciary services
and Pooled Plan Provider (PPP) services. NPPG has offices in New
Jersey, Florida, Pennsylvania, and Texas and has been servicing
clients since 1997. NPPG handles more than $6 billion in assets and
more than 5,000 plans for clients nationwide. A full suite of
compliance services includes Affordable Care Act (ACA) consulting,
ERISA 3(16) administrative fiduciary services, retirement plan
third party administration including Multiple Employer Plans
(MEP’s), Pooled Employer Plans (PEPs) as well as overall regulatory
consulting and plan correction. NPPG customizes solutions to meet
business and financial goals of their clients. NPPG clientele is
made up of members of the New York Stock Exchange and NASDAQ,
non-profit organizations, Fortune 500 companies, government
agencies, as well as small entrepreneurial businesses,
associations, and Professional Employer Organizations (PEOs). For
further information, contact National Professional Planning Group,
Inc. corporate office in Shrewsbury, New Jersey at (732)
758-1577.
1 Lincoln Financial Group, Consumer Sentiment Tracker, February
– August 2021 2 2021 Lincoln Retirement Power® Study
LCN-3886538-102621
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version on businesswire.com: https://www.businesswire.com/news/home/20211028006090/en/
Lincoln Financial Media Lora Lewis Lincoln Financial
Group 603-512-7030 Lora.Lewis@lfg.com
NPPG Media Marcia Anderson NPPG 732-758-1577 ext. 234
manderson@nppg.com
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