The defined contribution retirement plans known as PooledEmployer Plans (PEPs) came onto most people's radar with thesigning of the SECURE Act in late 2019. We should see them debutJanuary 1, 2021. Despite their relative newness, they descend froma type of plan that's been around a while — the multiple employerplan (MEP). That doesn't mean there aren't questions about PEPs. Infact, no one really knows the answers to these important ones: WillPEPs be successful? What will be the ideal number of employers inthem? the right number of participants? Will they be better thanthe options small employers have now?

To get a sense of what's in store with PEPs and what couldchange, it makes sense to dig into the ancestral MEPs and analyzethem. That's exactly what a paper by Morningstar senior analyst Lia Mitchell andhead of policy research Aron Szapiro, author and contributorrespectively, does. In the process, Mitchell and Szapirohave come up with some interestingrecommendations about PEPs.