Willis Towers Watson Enters US Market Seeking Joint Employer Plans

Having launched United Employer Plans in the UK and Europe, Willis Towers Watson is entering the US market with its own PEP offering.

In a press release Thursday, the British-American multinational announced the launch of LifeSight PEP, a pooled employer plan for the US market that it says “makes it easier for employers to sponsor a 401(k) plan and improves outcomes for their employees.”

The unified employer plan will use Transamerica as the data custodian.

The company will be looking for employers with a few hundred to 10,000 employees for the new combined plan, said Michelle Brennan, LifeSight USA business leader at Willis Towers Watson.

“Unlike many other PEPs on the market, we don’t target small employers with fewer than 100 or so employees or 401(k) start-up plans,” she said.

While the company expects early-stage employers to have between $50 million and $500 million in assets, it expects even large employers to adopt LifeSight “in the not too distant future” because PEP offers a way to cut costs for companies of all sizes. . added Ms. Brennan.

The cost of PEP will depend on the number of participants and plan assets for each participating employer, and could be up to 40% less than what employers pay today, she said.

Willis Towers Watson joins more than 100 firms that have launched or plan to launch PEPs in the US, according to the Department of Labor registration database. Some of the well-known employer pooled plan providers include Principal Financial Group, Mesirow Financial Holdings, Paychex, Fidelity Investments and Aon, who say they have accumulated over $1 billion in assets and liabilities in their pooled plan.

Employers’ pooled plans are a relatively new type of pension plan that allows employers from unrelated businesses to band together to offer a single “pooled” plan. They are being touted as a way for employers to reduce their fiduciary and administrative responsibilities and reduce planning costs through greater economies of scale. United Employers’ plans began to roll out in 2021 with the passage of the SECURE Act, which made it easier to create new plans.

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