A Tailored approach to pooled plans

Ascensus | American Funds PEP

Sponsoring a retirement plan provides many potential benefits to business owners—and a PEP can help alleviate some of the challenges of overseeing a retirement plan by helping ease administrative burdens and fiduciary oversight. With several key differentiators and advantages, the Ascensus | American Funds PEP gives you the flexibility to design a retirement program that will best fit the unique needs of your business.

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Ascensus | American Funds PEP investments

Savers want to feel confident that their investment selections are appropriate for their unique circumstances and goals—but many may not know where to start. Target Date Plus, powered by Morningstar Investment Management LLC, is a personalized target date service that uses key participant data to dynamically create a personalized asset allocation, matching participants’ financial needs more closely than traditional target date fund allocations.

Learn more about how the Ascensus | American Funds PEP takes a tailored approach to target date funds.

Although the target date portfolios are managed for investors on a projected retirement date time frame, the allocation strategy does not guarantee that investors' retirement goals will be met. Investment professionals manage the portfolio, moving it from a more growth-oriented strategy to a more income-oriented focus as the target date gets closer. The target date is the year that corresponds roughly to the year in which an investor is assumed to retire and begin taking withdrawals. Investment professionals continue to manage each portfolio for approximately 30 years after it reaches its target date.

Ascensus | American Funds PEP pricing

The Ascensus | American Funds PEP offers the traditional administrative and investment fiduciary benefits of a pooled plan—with Wilshire taking on the role as 3(38) investment fiduciary—plus additional advantages, including:

  • Lower costs for participating employers: Costs are spread across a larger participant and asset base, which could reduce costs for participating employers.
  • Less time and effort: Newport Group, Inc., an Ascensus company, serves as the plan's PPP and handles much of the administration—including eligibility, beneficiary tracking, and plan disbursements—so you’re free to focus on growing your business rather than managing a retirement plan.
  • Flexible plan options: Our fully bundled solution allows you to choose the features and options that will work best for you. You may also have greater access to institutional class mutual fund shares.
  • Post enrollment support: Representatives are available to answer employer and employee questions, validate information, fulfill transaction requests, and provide support in both English and Spanish.
Annual fees  
Recordkeeping Base: $4,250
Recordkeeping Participant: $60
Trust & Custodial Asset Based: 0.03%
3(38) Fiduciary Service Asset Based: 0.03%
Target Date Plus: 0.14%

Ascensus | American Funds PEP service overview

The Ascensus | American Funds PEP provides participating employers with an end-to-end solution that fits their unique needs, creates operational efficiencies, and ensures plan participants receive excellent service throughout the entire plan journey. Review the chart below to learn more about the types of responsibilities a pooled plan can help alleviate compared to a traditional 401(k) plan, also known as a single-employer 401(k) plan:

  PEP Plan Traditional 401(k)
Responsibility Pooled Plan Provider 3(38) Investment Manager Adopting Employer Plan Sponsor
Has discretionary authority over plan investments        
Selects plan design provisions        
Reviews, signs, and files 5500        
Reviews and signs off on compliance testing        
Monitors plan eligibility        
Reviews/approves/signs off on all distributions        
Compiles and completes year-end census data        
Submits timely and accurate payroll and plan contributions        

 

For a full list of responsibilities, see the Ascensus | American Funds PEP Responsibilties Grid

Additional Resources

Download the resources below to learn more about the benefits of Ascensus | American Funds PEP.

Ascensus | American Funds PEP Overview

The Ascensus | American Funds PEP provides an easy and affordable way for employers to offer a 401(k) retirement plan. Learn more about the unique benefits of this PEP for both employers and employees.

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Ascensus | American Funds PEP Roles and Responsibilities

A PEP allows employers of all sizes to join together for potential efficiencies and cost savings. Learn more about the roles and responsibilities that a PEP can eliminate from the employer’s task list.

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How PEPs are Expanding Retirement Plan Access

Use this whitepaper to learn more about pooled plan offerings—including how SECURE 2.0 paved the way for PEPs, the key benefits of this plan type, and the advantages they present for employers of all sizes.

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Request a proposal: Ascensus | American Funds PEP

Please complete the form below and our team of experts will be in touch to discuss the Ascensus | American Funds Pooled Employer Plan. If you would like to speak to a representative directly, please contact us at 800-345-6363.

Are you an employer, advisor, or American Funds representative?

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Disclaimer:

For financial professional and plan sponsor use only.

Newport Group, Inc. (“NGI”), an Ascensus company, is a registered Pooled Plan Provider offering professionally-managed Pooled Employer Plans (“PEPs”). More information regarding Newport’s registration and available plans can be found at www.efast.dol.gov by clicking Form PR Registration Search, entering “ “Newport” in the Legal Business Name field, and then clicking “search” at the bottom of the page. NGI and its affiliates provide recordkeeping, plan administration, trust and custody, consulting, insurance, and brokerage services.

Ascensus, LLC provides administrative and recordkeeping services. It is not a broker-dealer or an investment advisor. Neither Ascensus, LLC nor NGI provide tax, legal, or accounting services. Ascensus® and the Ascensus logo are registered trademarks of Ascensus, LLC. Copyright ©2024 Ascensus, LLC. All rights reserved.

All Capital Group trademarks mentioned are owned by The Capital Group Companies, Inc., an affiliated company or fund. All other company and product names mentioned are the property of their respective companies.

American Funds Distributors, Inc.

This content, developed by Ascensus, LLC should not be used as a primary basis for investment decisions and is not intended to serve as impartial investment or fiduciary advice.

Request a proposal: Ascensus | American Funds PEP

Please complete the form below and our team of experts will be in touch to discuss the Ascensus | American Funds Pooled Employer Plan. If you would like to speak to a representative directly, please contact us at 800-345-6363.

Are you an employer or advisor?
Employer
Advisor
American Funds Advisor