Pentegra launched a pooled employer plan that it is marketing through advisers, the record keeper said in a news release.
The PEP — called A Better 401(k) Plan — is being sold primarily through retirement-focused advisers, who are members of the association formed by The 401(k) Plan Company at the end of 2020, Pentegra spokesman Kevin Zimmerman said.
Pentegra launched the PEP on Jan. 1 and recently began efforts to open it up to advisers from outside The 401(k) Plan Company, according to Mr. Zimmerman.
Sixteen advisers from multiple broker-dealers and registered investment adviser firms across the country are already in the process of bringing existing 401(k) plans into Pentegra's pooled plan, Mr. Zimmerman said. He could not immediately determine how many plans had joined the PEP.
Advisers will be able to brand the PEP using private-labeling options that vary by state, according to the news release issued Monday.
Pentegra serves as the pooled plan provider as well as the 3(16) plan administrator, while 401(k) LLC, serves as the 3(38) investment manager.
"We believe PEPs are an ideal way to help make offering a retirement plan easier for businesses," said Pentegra President and CEO John Pinto in the news release. "PEPs allow each adopting employer to reduce its administrative and fiduciary burdens, as the PPP and 3(38) investment fiduciary shoulder responsibilities on behalf of adopting employers."