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Several regulatory and market factors are converging to make 2021 the year that pooled employer plans (PEPs) could begin to make significant headway in the market.

The bipartisan Setting Every Community Up for Retirement Enhancement (SECURE) Act, signed into law in December 2019, outlined the new retirement savings vehicle that allows unrelated companies to participate in a defined contribution plan that is professionally administered. The goal behind PEPs is to increase retirement savings coverage across the country by giving small and mid-size employers an easy way to offer a plan to their employees.

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