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Beginning August 1, Voya will bring what it is calling the very first pooled employer plan to employees of large nonprofits and other 501(c)(3) tax-qualified entities across the country.
Beginning August 1, Voya will bring what it is calling the very first pooled employer plan to employees of large nonprofits and other 501(c)(3) tax-qualified entities across the country.
Voya Financial announced it will be the recordkeeper of what it is calling the first 403(b) pooled employer plan, expanding employee access to retirement plan benefits at nonprofits.
Voya designed the Secure Retirement 403(b) PEP to provide a pooled plan option for nonprofit organizations in charitable, religious, scientific, educational and literary fields and health care-related entities to broaden retirement plan access for employees, according to the Windsor, Connecticut-based firm.
Voya is “thrilled to enter the 403(b) market,” said Brodie Wood, senior vice president and national practice leader of health care, education and nonprofit markets, in a press release.
“With the combination of PEPs growing in prominence over the past few years and the opportunity to permit 403(b) plans to maintain a PEP, we see even greater opportunities to provide employees within education, health care and other tax-exempt entities with greater access to retirement savings capabilities, and ultimately providing an opportunity for improved outcomes,” he said.
The plan was created to take advantage of changes allowed by the SECURE 2.0 Act of 2022, according to Voya, and is the first 403(b) PEP after numerous offerings to private businesses with 401(k) plans. .
The new PEP was registered with the Department of Labor and Department of the Treasury, earlier this year, explains Terry Power, CEO of The Platinum 401k Inc.
“We have developed a solid relationship with Voya and a few other major national recordkeepers in the Pooled Employer Plan space,” Power wrote by email. “Voya is a major player in the 403(b) market, and we’re delighted to have them on board as our first 403(b) PEP recordkeeper.”
LeafHouse Financial contracted to serve as the 3(38) fiduciary investment manager to satisfy Employee Retirement Income Security Act rules, and Plan Compliance, an affiliate of The Platinum 401k, enrolled as the 3(16) plan administrator, according to the press release.
The PEP is focused on existing ERISA 403(b) plans and is available to individual retirement plan advisers through Voya, Power explained.
“We view the 403(b) PEP market as an amazing opportunity for plan sponsors, advisers and, of course, 403(b) plan participants,” he wrote.
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