RADNOR, PA — Lincoln Financial Group (NYSE: LNC) recently introduced FlexPEP(k) and FlexPEP(b), its latest offerings in pooled employer plans (PEP) for 401(k) and 403(b) plans. This initiative marks a significant step forward in making comprehensive retirement benefits more accessible to employers who previously may have found the process daunting due to resource constraints.
The introduction of these plans comes at a time when the retirement planning landscape is experiencing a shift towards group solutions, driven by a desire among employers to streamline administration, reduce costs, and enhance fiduciary oversight. Matt Condos, senior vice president of Retirement Plan Services Product Solutions at Lincoln Financial Group, noted that while recent legislative changes such as the SECURE Act and SECURE 2.0 have spurred interest in PEPs, there remains a substantial opportunity for businesses and not-for-profits to achieve better outcomes from their retirement benefits.
Research indicates a disparity in retirement plan offerings across employer sizes, with smaller employers significantly less likely to provide such benefits. This gap highlights a critical need for solutions that cater to the unique challenges faced by smaller entities, including financial constraints and administrative burdens. FlexPEP(k) and FlexPEP(b) aim to address these challenges by offering a full-service model that includes access to in-plan guaranteed income solutions and group plan discounts, potentially leading to lower overall plan costs.
Smart Retirement Solutions, Inc., will serve as the Pooled Plan Provider, delivering independent fiduciary services designed to alleviate the complexities of plan sponsorship. Envestnet, a leader in wealth management technology and solutions, will act as the 3(38) investment provider, managing the investment fund menu for both FlexPEP(k) and FlexPEP(b). This collaboration underscores the commitment of all parties involved to provide employers with a streamlined, cost-effective approach to retirement planning.
The significance of this development extends beyond the immediate benefits to employers and their employees. By making retirement plans more attainable for smaller businesses and not-for-profits, Lincoln Financial’s new offerings have the potential to enhance the financial security of a broader segment of the American workforce. As employers navigate the competitive landscape for talent, the ability to offer robust retirement benefits can be a key differentiator in attracting and retaining employees.
Tina Anstett, Head of Fiduciary Services at Smart Retirement Solutions, expressed enthusiasm about the expanded partnership with Lincoln, emphasizing the goal of simplifying retirement plan sponsorship for employers. Meanwhile, Sean Murray, Head of Envestnet Workplace, highlighted Envestnet’s role in providing fiduciary guidance and investment due diligence, aiming to empower employers to support their employees’ retirement goals effectively.
The launch of FlexPEP(k) and FlexPEP(b) represents a noteworthy advancement in the effort to democratize access to quality retirement planning resources. For small to medium-sized businesses and not-for-profit organizations, these solutions offer a path to overcoming traditional barriers to offering competitive retirement benefits. As industry watchers observe the impact of these innovations, the broader implications for the retirement planning ecosystem and the financial well-being of the American workforce remain a focal point of interest.
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