In today’s environment, market volatility is hard to ignore. As headlines around economic uncertainty dominate the news, employers and employees alike are asking questions about retirement readiness, risk exposure and whether their plans are keeping up.
Periods like this can strain retirement plan governance and operations. But for employers that participate in a pooled employer plan (PEP), we believe the stress is often significantly lower.
Here’s why PEPs can help employers stay focused — even when the markets aren’t.
01
Market volatility introduces a wave of questions: Are our investments still suitable? Should we make changes to plan design? Are our fiduciary responsibilities increasing as participants react?
In a single-employer plan, these questions often fall to internal teams that may lack the capacity or specialized knowledge to address them quickly. In a PEP, much of that complexity is already outsourced. Employers benefit from a defined governance model, professional fiduciary oversight and built-in operational support. This reduces the noise and the administrative lift during turbulent times.
02
During choppy markets, consistent plan oversight and operations matter. It’s easy for attention to drift when economic and market volatility may prompt an evaluation of broader business risks. PEPs allow employers to remain confident in plan governance and investment oversight, because those roles are delegated to expert providers.
By removing the burden of investment decision making, and vendor coordination, PEPs help ensure that even amid economic headwinds, the retirement plan doesn’t become a distraction or a liability.
03
When you’re not bogged down by plan administration, you can focus on what really matters: your people.
Many employers in PEPs use their time and energy to strengthen employee engagement by offering financial education, promoting savings behaviors, or enhancing plan features. Instead of reacting to market news or worrying about plan updates, they’re working to drive long-term outcomes for their workforce.
04
When markets are volatile, employee anxiety tends to rise. PEPs can help address this by providing structural support to employers and offering a range of tools. These tools include managed accounts, access to advice, and financial counseling, which can significantly alleviate employee concerns. As a result, employees feel more confident that their retirement plan is built to withstand uncertainty. Employers can feel good knowing they’ve taken a proactive step toward providing stability.
While no one can predict the market, employers don’t have to face the storm alone. PEPs are designed to reduce plan complexity and support employers during turbulent times. By helping employers focus on their people and long-term strategies, PEPs can achieve continued success even in uncertain conditions.
In conclusion, market volatility is an inevitable part of the economic landscape, and it can create significant challenges for retirement plan governance and operations. However, for employers participating in a PEP, the impact of these challenges is typically reduced. PEPs offer a streamlined governance model, professional fiduciary oversight, and robust operational support, which collectively minimize the administrative burden and allow employers to stay focused on their core mission.
By delegating the complexities of investment management and plan administration to expert providers, employers can maintain confidence in their retirement plans and continue to prioritize the well-being and financial security of their employees.
If your organization is looking for a way to simplify retirement plan management while navigating uncertainty with confidence, now is the time to explore the value a PEP can bring. Reach out to learn how a PEP could strengthen your retirement offering — not just in volatile times, but for the long run.
This document provides information on LifeSight Pooled Employer Plan (PEP) services that are being offered to you by WTW. Willis Towers Watson US LLC and Towers Watson Investment Services, Inc. or their affiliates are not acting in the capacity of providing “Investment Advice” within the meaning of 29 C.F.R. § 2510.3-21. It is your decision whether to engage WTW to provide any services or to invest in any investment available through WTW’s LifeSight PEP offering.
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