A Pooled Employer Plan (PEP) allows unrelated employers to participate in a single, large-scale retirement plan. This structure offers economies of scale and potentially lower administrative costs. However, these plans are subject to specific regulatory oversight, including mandatory annual examinations of their financial statements. These examinations, conducted by independent qualified public accountants, ensure the plan operates in accordance with the Employee Retirement Income Security Act of 1974 (ERISA) and other applicable regulations. They involve a comprehensive review of the plan’s financial records, internal controls, and administrative processes.
Independent oversight provides crucial safeguards for participating employers and their employees. It promotes transparency, accountability, and financial soundness within the plan. By verifying the accuracy of financial reporting and the effectiveness of internal controls, these examinations help protect plan assets and ensure participants’ benefits are secure. This regulatory framework contributes to the overall stability and confidence in the retirement system.
