Mercer PEP and DC Group of Plans Hit Combined $3.6B AUM

The Mercer Wise 401(k) and Mercer Wise Pooled Employer Plan have reached a combined $3.6 billion in U.S. plan assets under management, the firm announced Thursday.

Mercer’s 401(k) and PEP launched in 2017 and 2021, respectively, and are outsourced retirement plan solutions that “seek to improve participant outcomes while reducing plan sponsors’ administrative duties and fiduciary risk,” according to Mercer. The Mercer Wise 401(k) is what is known as a Defined Contribution Group of Plans.

The Mercer Wise platform serves 80 U.S. employers, spanning a range of industries from technology and manufacturing to health care and hospitality, each with employee bases ranging from 350 to about 5,000. In total, as of June 30, the plans provide 401(k) benefits to more than 70,000 employees.

The PEP allows plan sponsors of certain plan sizes to pool their retirement resources with those of other employers and delegate most plan responsibilities to Mercer.

“Pooled employer plans provide a real opportunity to build retirement security for millions of Americans that have historically not had access to an employer-sponsored plan,” said Holly Verdeyen, Mercer’s U.S defined contribution leader, in a statement. “Through the Mercer Wise platform, we are helping employers offer competitive financial wellness benefits and improve retirement plan coverage for their employees, all while potentially reducing plan costs and participant fees that allow employees to save more over time.”

Empower serves as the recordkeeper for both the Mercer Wise 401(k) and PEP plans.

“People who have access to workplace plans tend to start investing for retirement earlier and save more. This puts them in a better position to replace their pre-retirement income,” stated Joseph Smolen, Empower’s executive vice president for core and institutional markets. “With Americans living longer than ever before, employer-sponsored retirement plans are a critical component of helping millions of Americans prepare for retirement.”

Voya Financial Inc. this week announced it has surpassed $100 billion in assets across its multiple employer solutions, which include multiple employer plans, PEPs, employer aggregation programs and other customized solutions. The firm saw a 15% rise in total assets compared with the same period last year.

According to PLANSPONSOR’s 2024 Recordkeeping Survey, Voya Financial had the most assets in pooled employer plans with $2.02 billion, followed by Principal Financial Group with $1.7 billion and Transamerica with $1.58 billion, according to data through December 31, 2023. Mercer did not participate in the survey.