Why Florida Employers Are Moving Away from Standalone 401(k) Plans

2023–2024 has seen a wave of Florida businesses opting out of standalone 401(k) plans and into Pooled Employer Plans and saving tens of thousands of dollars in the process.

Pooled Employer Plans (PEPs) are one of the biggest shifts in the retirement space in decades. They let completely unrelated businesses join a single 401(k) plan—under one umbrella—while handing off most of the headaches that normally come with it.

You don’t have to share an industry.
You don’t need a formal group.
You just OPT IN.

The benefits are hard to ignore:

• No more annual audit costs for large plans
• Centralized plan administration
• Lower total plan fees
• Less liability hanging over your head

It’s one of the cleanest ways for a business to save time, cut costs, and finally get out of the weeds of 401(k) management.

What Exactly Is a PEP?

A PEP is a retirement plan created under the SECURE Act that lets completely unrelated employers participate in one professionally managed plan.

Instead of running your own standalone plan—with all the cost, admin, and liability that comes with it—you join a larger, streamlined plan run by a pooled plan provider (PPP).

Why This Matters to Florida Employers

If you’re like most employers I talk to in South Florida, your current 401(k) probably feels like a “set-it-and-forget-it” setup.

Until something breaks:

• A compliance notice
• A failed nondiscrimination test
• A surprise audit fee
• Or an employee spending hours chasing paperwork

PEPs are designed to prevent all of that.

They centralize administration, automate compliance, and—when done right—can significantly reduce your plan costs and risk exposure.

Let’s Talk Numbers

If you have more than 100 eligible employees, you’re likely paying $12,000–$17,000 per year in audit costs alone.

That expense disappears in a PEP.

One South Florida business I helped was paying:

• $12,000 per year for audits
• Another $60,000+ in payroll hours managing the plan internally

We moved them into a PEP—and just like that, those burdens vanished.

That’s over $70,000 per year in savings, with no drop in service quality.

Do You Still Have Responsibilities?

Yes—but they’re minimal and manageable. You still need to:

• Select a responsible PEP provider
• Provide accurate employee data (payroll, hours, contributions)
• Comply with plan rules (which are already built for you)
• Monitor the provider periodically

You’re no longer handling vendor coordination, fiduciary oversight, or audits.
If the PEP uses a 3(38) fiduciary, you’re not even responsible for investment decisions.

What About the Audit?

PEPs are still audited—but not you individually.

It’s a single plan-level audit managed by the pooled plan provider.

That means no coordinating CPAs, no pulling reports, and no audit invoices landing on your desk.

Just keep your employee data accurate and responsive—nothing more.

What’s In It for Your Employees?

Employees actually gain access to:

• Institutional-quality investment options
• Lower internal fund fees
• Fewer errors with contributions and eligibility
• A professionally monitored retirement plan

But Not All PEPs Are Created Equal…

Some are just old problems wrapped in new branding.

Look for a provider that:

• Uses a true 3(38) fiduciary
• Offers transparent, flat pricing
• Has strong payroll integration
• Delivers real support—not just a sales pitch

Bottom Line

Because now there’s a better option. One that keeps you in control—and takes the burden off your back.

Want to see what your numbers would look like inside a PEP?
Let’s review your plan together—no pressure, just clarity.