In Bloomberg Law, David Kirchner Discusses Push for PEP Safe Harbor

In an article in Bloomberg Law, David Kirchner, principal in the benefits consulting group, discusses the recent guidance from the Department of Labor’s Employee Benefits Security Administration (EBSA) on 401(k) pooled employer plans (PEPs).

The guidance, which was included in a Department of Labor request for information, has prompted employers to seek greater legal protection when participating in PEPS.

As these plans continue to gain popularity for their cost-effectiveness and streamlined administration, employers are calling for a safe harbor that shields them from any potential conflicts of interest within the structure and helps to mitigate any risk of ERISA benefits litigation.

David noted his hope is that the guidance helps make the range of PEPs more manageable and easier for employers to select and monitor, “PEPs are all over the map right now. Some providers are setting the bar for best practices, while others fall short. It’s the wild west out there.”

For more details on Ropes & Gray’s latest thinking on PEPs, be sure to read our client alert on this topic, authored by Allie Alperovich, David Kirchner, Josh Lichtenstein, and Jonathan Reinstein.