The Standard Launches New 403(b) PEP for Nonprofit Organizations
The Standard (Standard Insurance Company) is expanding its pooled employer plan capabilities with the introduction of an ERISA 403(b) PEP built specifically for nonprofit organizations. Announced on July 30, the move extends the company’s existing 401(k) PEP leadership into the 403(b) market, giving nonprofit employers a pooled plan option that can help widen retirement plan access across a historically underserved sector.
For many nonprofits, offering a competitive retirement benefit is a challenge of capacity as much as cost. Limited staff and administrative bandwidth often make it difficult to shoulder the fiduciary and operational load that a standalone plan requires — exactly the burden this new offering is designed to lift.
“Nonprofit employers often face greater time, staffing and resource constraints than private-sector organizations, and the pressure to manage benefits costs continues to grow.”
— Steve Chappell, AVP of Retirement Plan Sales, The StandardA Fully Integrated Fiduciary Model
As one of the earliest providers of PEPs, The Standard now manages nearly $5 billion in PEP assets under management. Under the new plan, the company acts as the pooled plan provider (PPP) and is designated as the 402(a) named fiduciary and 3(16) administrative fiduciary, while also serving as the plan’s recordkeeper.
Structured this way, the PPP takes on most fiduciary oversight and handles administration and participant services in-house. The result is that the plan’s key responsibilities are coordinated by a single accountable organization rather than split across multiple vendors.
“The Standard’s 403(b) PEP is designed to help ease these pressures by outsourcing key plan responsibilities. Advisors rely on our fully integrated PEP solution to help clients focus on their priorities.”
— Steve Chappell, AVP of Retirement Plan Sales, The StandardHow a PEP Works
Established under the SECURE Act, a pooled employer plan allows multiple unrelated employers to participate in a single retirement plan while delegating most administrative and fiduciary duties to a pooled plan provider. For advisors and nonprofit sponsors, that translates into reduced administrative overhead and shared fiduciary risk — the appeal that has driven PEP adoption in the 401(k) space and is now being carried into the 403(b) world.
New 403(b) PEP. The Standard has launched an ERISA 403(b) pooled employer plan aimed at nonprofit organizations, extending its PEP program beyond 401(k)s.
Built for nonprofits. The offering targets employers who face tighter time, staffing and resource constraints and are under rising pressure to control benefits costs.
Single accountable provider. The Standard serves as pooled plan provider, 402(a) named fiduciary, 3(16) administrative fiduciary and recordkeeper — consolidating oversight under one organization.
Established scale. As one of the first PEP providers, The Standard holds nearly $5 billion in PEP assets under management.
SECURE Act roots. PEPs let unrelated employers join one plan while outsourcing most administrative and fiduciary duties, lowering overhead and shared risk.