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Introduction to the Bernstein Pooled Employer Plan

In a significant move to improve retirement options for small and mid-sized businesses in the United States, Bernstein Private Wealth Management has announced the launch of its new Pooled Employer Plan (PEP). This innovative structure aims to streamline retirement benefits, providing a practical solution not only for businesses but also for their employees, ensuring everyone has access to robust retirement savings options.

What is the Bernstein PEP?

The Bernstein PEP is designed to cater to the needs of small and mid-sized enterprises and private equity firms, enabling them to offer competitive retirement benefits without the complexities associated with managing traditional 401(k) plans. By pooling resources, this PEP aims to reduce the administrative burden on employers, enabling them to focus on their core business operations while providing enhanced retirement solutions to their employees.

Halley Love, the Head of Bernstein Retirement, expressed excitement about the launch, emphasizing the importance of providing a supported and simplified plan management experience. The new PEP combines institutional-quality investments with user-friendly engagement tools, making it easier for employees to participate actively in their retirement planning.

The Benefits of the Pooled Employer Plan

The introduction of PEPs, stemming from the SECURE Act of 2019, allows multiple unrelated employers to share a single retirement plan managed by a third-party provider. This model significantly lowers fiduciary risks and reduces the complexities associated with administrative responsibilities. The Bernstein PEP is aimed at alleviating these challenges, allowing businesses to offer attractive retirement packages that encourage employee retention and satisfaction.

One of the key advantages of the Bernstein PEP is its shared governance structure, which simplifies the compliance and reporting processes traditionally inherent in retirement plans. By centralizing these functions, Bernstein ensures that employers can navigate the regulatory landscape without excessive hassle.

Investment Strategy and Expertise

Bernstein leverages its vast experience in managing defined contribution assets, which amounts to over $142.2 billion. Acting as the 3(38) investment advisor for the PEP, Bernstein collaborates with Empower as the recordkeeper and with the National Professional Planning Group (NPPG) serving as the pooled plan provider. This strategic partnership enables Bernstein to offer a mix of high-caliber investment options tailored for different employer needs, ultimately driving better retirement outcomes for participants.

The PEP provides employers with not just a retirement plan, but also a robust set of resources focused on long-term value creation. Bernstein's dedicated team of defined contribution specialists is positioned to guide plan sponsors through fiduciary responsibilities, effective plan designs, and overall administrative efficiency, thus ensuring that businesses can maximize their contribution to employee financial security.

Impact on the Retirement Savings Gap

The Bernstein PEP comes at a crucial time as studies reveal that many small to mid-sized businesses struggle to provide sufficient retirement benefits for their employees. With nearly half of all employees in these categories lacking an employer-sponsored retirement plan, this initiative aims to bridge the retirement savings gap in America. By facilitating easier access to quality retirement plans, Bernstein is helping to foster a culture where businesses recognize the value of investing in their employees' futures.

Equipped with Bernstein's commitment to excellence in wealth management and an understanding of the challenges that small businesses face, the PEP is tailored to meet the needs of today's workforce. The offering is not just about compliance but about crafting a retirement solution that promotes financial wellness and security for employees, ultimately leading to a more engaged and satisfied workforce.

Conclusion

As the retirement landscape evolves, Bernstein Private Wealth Management's Pooled Employer Plan represents a forward-thinking solution to enhance retirement benefits for small and mid-sized businesses. Combining expert advice, supportive resources, and an efficient management structure ensures that employers and employees alike can thrive in a more secure financial environment. For businesses looking to elevate their retirement offerings, the Bernstein PEP provides a compelling option that simplifies the complexities of plan management while maximizing the potential benefits for employees.

For more information about Bernstein’s retirement solutions and to explore how the PEP can benefit your organization, visit Bernstein.com.