Pooled Employer Plans: Frequently Asked Questions

What is the Fisher\SMB Pooled Employer Plan (PEP)?

The Fisher\SMB™ Pooled Employer Plan (PEP) is a single, professionally managed retirement plan that allows multiple employers to participate in one shared 401(k) plan.

Instead of each employer managing their own plan independently, the Fisher\SMB Pooled Employer Plan uses a Pooled Plan Provider to oversee administration, compliance, and key fiduciary responsibilities on behalf of all participating employers. This structure simplifies plan management while allowing businesses to offer a high-quality retirement benefit to their employees.

How does the Fisher\SMB Pooled Employer Plan compare to a traditional 401(k)?

The Fisher\SMB Pooled Employer Plan differs from a traditional 401(k) by centralizing administration, fiduciary responsibility, and investment management under a single coordinated structure.
Key differences include:

• Administration:
  The Fisher\SMB Pooled Employer Plan transfers most administrative responsibilities from the employer to a Pooled Plan Provider, while traditional 401(k) plans require employers to manage or coordinate these functions.
• Fiduciary responsibility:
  In the Fisher\SMB Pooled Employer Plan, fiduciary responsibilities are shared between the Pooled Plan Provider and the 3(38) investment manager (Fisher\SMB), whereas employers retain more direct responsibility in a traditional 401(k).
• Investment management:
  The Fisher\SMB Pooled Employer Plan uses a centralized, professionally managed investment lineup, while traditional plans may offer customized menus.
• Cost structure:
  The Fisher\SMB Pooled Employer Plan may reduce costs for larger plans through shared services such as audits, while traditional plans over 100 participants have to solely fund these costs.

For a detailed, side-by-side comparison of features, responsibilities, and costs, see our full Fisher\SMB Pooled Employer Plan vs. traditional 401(k) comparison chart.

What is a Pooled Plan Provider (PPP) in the Fisher\SMB Pooled Employer Plan?

In the Fisher\SMB Pooled Employer Plan, the Pooled Plan Provider (PPP) is the entity responsible for operating and managing the plan. The PPP serves as the plan sponsor and named fiduciary, with primary responsibility for:

• Plan administration and operations
• Ensuring compliance with ERISA and IRS requirements
• Selecting and monitoring service providers (except the 3(38) advisor which is delegated to the Adopting Employer)
• Acting as the 3(16) plan administrator

This centralized structure within the Fisher\SMB Pooled Employer Plan helps reduce administrative and fiduciary burden for participating employers.

Why choose the Fisher\SMB Pooled Employer Plan?

Why choose the Fisher\SMB Pooled Employer Plan?
The Fisher\SMB Pooled Employer Plan combines institutional-quality investment management with a simplified, fully supported retirement plan structure designed specifically for small and mid-sized businesses.
Key advantages of the Fisher\SMB Pooled Employer Plan include:

• Fiduciary-first approach
  Fisher\SMB serves as the 3(38) investment manager within the Pooled Employer Plan, taking discretionary responsibility for investment decisions and acting in the best interest of employers and employees.
• Institutional-quality investments
  The Fisher\SMB Pooled Employer Plan provides access to high-quality, low-cost institutional share class funds designed to improve participant outcomes.
• Scale-driven benefits
  The structure of the Fisher\SMB Pooled Employer Plan allows for negotiated pricing and enhanced vendor service levels.
• Enhanced employee engagement
  Through personalized, one-on-one financial guidance and proactive outreach, the Fisher\SMB Pooled Employer Plan helps employees make more confident financial decisions.
• Simplified administration
  The Fisher\SMB Pooled Employer Plan offers a single, centralized point of contact for plan support and employee questions, reducing administrative complexity for employers.

What types of businesses benefit most from the Fisher\SMB Pooled Employer Plan?

The Fisher\SMB Pooled Employer Plan can benefit a wide range of businesses, but it is often most cost-effective for employers with 100 or more plan participants.
Larger plans may see greater value from the Fisher\SMB Pooled Employer Plan because:

• Annual audit requirements are typically already in place
• Audit costs can be significantly reduced through cost sharing within the plan

Smaller employers may still benefit from the Fisher\SMB Pooled Employer Plan through simplified administration and fiduciary support, although cost savings will vary based on their current plan structure.

What are the main benefits of joining the Fisher\SMB Pooled Employer Plan?

The Fisher\SMB Pooled Employer Plan helps employers streamline retirement plan management while improving efficiency and reducing risk. Key benefits include:

• Reduced administrative workload through outsourced plan management
• Lower fiduciary exposure through the Fisher\SMB Pooled Employer Plan structure
• Potential audit cost savings through shared plan-level audits
• Time savings by reducing internal administrative responsibilities

Overall, the Fisher\SMB Pooled Employer Plan enables employers to focus on their core business while offering a high-quality retirement plan.

How does the Fisher\SMB Pooled Employer Plan reduce administrative burden?

The Fisher\SMB Pooled Employer Plan reduces administrative burden by centralizing plan management under a Pooled Plan Provider. Within the Fisher\SMB Pooled Employer Plan, the plan’s service providers provide oversight of:

• Form 5500 preparation and filing
• Compliance testing and reporting
• Audit coordination
• Participant notices and documentation
• Loan and distribution processing

By outsourcing these responsibilities through the Fisher\SMB Pooled Employer Plan, employers can significantly reduce the time and effort required to manage their plan.

Can employers customize plan features in the Fisher\SMB Pooled Employer Plan?

Yes, employers can customize key plan design features within the Fisher\SMB Pooled Employer Plan.
Employers generally retain flexibility over:

• Vesting schedules
• Employer contributions
• Eligibility requirements

However, the Fisher\SMB Pooled Employer Plan uses a single, professionally managed investment lineup shared across all participating employers. This structure ensures consistent investment oversight and fiduciary management across the entire plan.

How much does the Fisher\SMB Pooled Employer Plan cost?

There is no single standard price for the Fisher\SMB Pooled Employer Plan because costs vary based on plan size, number of participants, total assets, and the services included. Typical cost components in the Fisher\SMB Pooled Employer Plan include:

• Pooled Plan Provider (PPP) fees
• Plan administration and recordkeeping fees
• 3(38) investment management fees (Fisher\SMB)
• Investment fund expenses
• Audit costs

Is the Fisher\SMB Pooled Employer Plan cheaper than a traditional 401(k)?

The Fisher\SMB Pooled Employer Plan is typically more cost-effective than a traditional 401(k) for employers with over 100 participants who already outsource 3(16) and 3(38) services. This is largely due to:

• Shared audit costs across participating employers
• Lower annual audit expenses

Employers with fewer participants or fewer outsourced services may see higher total costs within the Fisher\SMB Pooled Employer Plan because:

• The plan includes bundled fiduciary and administrative services
• These services may represent new or expanded capabilities

Who is the fiduciary in the Fisher\SMB Pooled Employer Plan?

In the Fisher\SMB Pooled Employer Plan, the Pooled Plan Provider serves as the plan sponsor and named fiduciary, responsible for governance, compliance, and administration.

Fisher\SMB serves as the 3(38) investment manager within the Pooled Employer Plan and provides discretionary investment oversight.
Employers participating in the Fisher\SMB Pooled Employer Plan retain a limited fiduciary role focused on:

• Selecting the plan
• Timely submission of payroll contributions
• Monitoring the Pooled Plan Provider and Fisher\SMB in its role as the 3(38) investment manager

How does the Fisher\SMB Pooled Employer Plan reduce fiduciary liability?

The Fisher\SMB Pooled Employer Plan reduces fiduciary exposure by transferring key responsibilities to specialized providers.
Within the Fisher\SMB Pooled Employer Plan:

• The Pooled Plan Provider assumes responsibility for governance and compliance
• Fisher\SMB assumes responsibility for investment selection and oversight as a 3(38) manager

As a result, employers have a more limited fiduciary role focused primarily on oversight rather than direct management.

How does the Fisher\SMB Pooled Employer Plan compare to a MEP?

The Fisher\SMB Pooled Employer Plan (PEP) is a type of Multiple Employer Plan (MEP) that enables multiple employers to participate in a single retirement plan. Unlike traditional MEPs, which typically require a shared organizational connection such as a common industry or association, a PEP allows unrelated employers to participate together.

A key distinction between a MEP and a PEP is structural: PEPs are required to have a Pooled Plan Provider (PPP) that serves as the plan sponsor. In this role, the PPP assumes responsibility for administration, compliance, and key fiduciary functions, creating a centralized framework designed to reduce employer workload.

Do employers still have fiduciary responsibilities in the Fisher\SMB Pooled Employer Plan?

Yes, employers retain limited fiduciary responsibilities within the Fisher\SMB Pooled Employer Plan.
These responsibilities include:

• Selecting the Fisher\SMB Pooled Employer Plan
• Monitoring the Pooled Plan Provider and Fisher\SMB in its role as the 3(38) investment manager

Most day-to-day fiduciary responsibility is handled within the Fisher\SMB Pooled Employer Plan structure.

Can non-profit organizations participate in the Fisher\SMB Pooled Employer Plan?

Non-profit organizations may be eligible to participate in the Fisher\SMB Pooled Employer Plan if they sponsor a 401(k) plan.
Eligibility depends on the organization’s structure and plan design. Organizations should confirm alignment with the requirements of the Fisher\SMB Pooled Employer Plan before participating.