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ADP's Innovative Save4Retirement Pooled Employer Plan

On December 10, 2025, ADP announced the launch of its new Save4Retirement Pooled Employer Plan (PEP), designed to streamline retirement planning for employers. This cutting-edge initiative allows multiple unrelated businesses to share a single, professionally managed 401(k) plan, ultimately reducing administrative burdens and fiduciary risks.

Why This Matters to Employers

Employers are increasingly seeking ways to provide attractive retirement plans without the headache of excessive administrative tasks or increased liability. Chris Magno, Senior Vice President at ADP, highlighted that this PEP combines scale, integration, and fiduciary support, allowing investment advisors to flexibly assist their clients in managing plan costs while ensuring a well-governed retirement benefit.

Reduced Administrative Load

At the core of the Save4Retirement PEP is a shift in responsibility for vital administrative and compliance tasks from employers to a pooled plan provider. Pentegra has been appointed as the pooled plan provider and is tasked with handling major responsibilities, including distributing funds and managing compliance tests. This shift means that employers can focus more on their business rather than on the complexities of retirement plan management.

Furthermore, Mesirow serves as the ERISA 3(38) investment manager overseeing the investment options. Their duties include ongoing investment monitoring and selection, providing transparency and documentation that employers can trust in their fiduciary oversight.

Empowering Investment Advisors

Independent registered investment advisors (RIAs) will play a crucial role in the Save4Retirement framework by continuing to advise and support employers with plan features. The integrated platform allows RIAs to consolidate their clients into a single, manageable system, which simplifies functionality and enhances their impact on clients' retirement planning. This structure enables RIA firms to limit administrative complexity, leading to improved service delivery and client satisfaction.

Cutting-Edge Technology Integration

One of the standout features of the Save4Retirement PEP is its seamless integration with ADP's payroll and recordkeeping systems. This advanced technology ensures real-time data transfer between payroll and recordkeeping systems, helping maintain an accurate reflection of employee contributions and adjustments. This integration not only enhances operational efficiency but also bolsters the trustworthiness of participant accounts through continuous compliance verification.

Conclusion

Employers searching for innovative, effective solutions for retirement planning will find much to appreciate in ADP's Save4Retirement PEP. By offering substantial administrative relief and reducing fiduciary risk, this program embodies a significant advancement in the world of corporate retirement plans. With a strong emphasis on cost efficiency, expert management, and technological support, the future looks bright for employers and their employees alike. For more information about the Save4Retirement PEP, visit ADP.com/RetirementServices.