WASHINGTON, D.C. – The Insured Retirement Institute (IRI) submitted comments to the U.S. Department of Labor (DOL) on a proposed rule providing interpretive guidance for pooled employer plans (PEPs), emphasizing the critical role these plans play in expanding retirement security for America’s workforce.
Authorized by the SECURE Act of 2019, PEPs enable small and mid-size employers to band together under a single retirement plan administered by a pooled plan provider. Their purpose was to remove barriers — including administrative burdens, costs, complexity, and fiduciary liability — that have historically discouraged small and mid-sized businesses from offering retirement benefits.
By consolidating administration, oversight, and investment management, PEPs were designed to expand coverage, lower costs through economies of scale, and simplify employer responsibilities.
“From IRI’s perspective, PEPs represent a significant policy innovation with the potential to close coverage gaps and enhance retirement security for millions of Americans employed by small and mid-sized businesses,” said Emily Micale, Director, Federal Regulatory Affairs. “Continued efforts by DOL should remain focused on supporting continued flexibility and innovation in business models in the marketplace.”
Since their launch in 2021, PEPs have grown rapidly. By the end of 2022, there were 190 plans covering more than 618,000 participants with nearly $5 billion in assets. IRI believes that the success of this marketplace reflects the flexible statutory and regulatory framework that allows a variety of models to meet the diverse needs of employers and workers.
In comments on the proposed rule, IRI urged the DOL to:
- Preserve Flexibility in Plan Models – Avoid limiting PEP structures and allow multiple models to coexist, ensuring competition and innovation.
- Establish Practical Safe Harbors – Provide employers with clear guidance on fiduciary responsibilities, emphasizing accountability and meaningful participant disclosures. Safe harbors should be broad and principles-based, rather than limited to specific plan designs.
- Maintain Proportionate Reporting Requirements – Ensure reporting that remains focused and practical to avoid discouraging participation while still providing meaningful transparency.
- Promote Growth and Expansion – Continue fostering a regulatory environment that encourages more employers to adopt PEPs and extend coverage to millions of workers currently without a plan.
“We commend DOL for its thoughtful engagement and stand ready to work with regulators to ensure continued growth and success of this marketplace,” Micale said. “By supporting flexibility, clear guidance, and practical oversight, IRI believes the Department can strengthen PEPs as a vital tool to expand retirement plan access, reduce costs, and improve retirement security for millions of American workers.”
# # #
Contact: Dan Zielinski
Stay Informed
Latest News
IRI VISION: EMBRACING AGILITY AND PURPOSE-DRIVEN SOLUTIONS
The insured retirement industry must transition from slow-to-implement, data-heavy solutions that try to address every possible use case, to lightweight,…
IRI VISION: TWO BIG OPPORTUNITIES INSPIRED BY MULTICULTURAL DATA
As diverse as America is, we have common concerns. Among them, having enough money saved for a healthy retirement is…
IRI ANNOUNCES STAFF CHANGES
The Insured Retirement Institute (IRI) announced promotions for two team members and a new hire. Shani Armon is IRI’s new…