PEP (Pooled Employer Plan)
A pooled employer plan is a 401(k) structure created by the SECURE Act that lets unrelated employers join one plan run by a registered pooled plan provider.
PEPs are a standalone alternative to PEO retirement plans that provide outsourced administration without requiring a co-employment relationship. A registered pooled plan provider is the named fiduciary and administrator, and employers of any size can join.
If retirement benefits are a main reason you are considering a PEO, price a PEP plus payroll software against the PEO bundle. The comparison forces the PEO’s retirement value into a number, and it gives you a fallback plan design you could keep if you later leave the PEO.