Adoption of Pooled Employer Plans (PEPs) Grows Among Recordkeepers

As of July 7, 2026, the adoption of Pooled Employer Plans (PEPs) among recordkeepers is gaining momentum, according to the Cerulli Edge—U.S. Retirement Edition. A significant 60% of recordkeepers currently handle PEPs, with projections indicating an increase over the next year. Furthermore, 71% of recordkeepers consider PEPs a strategic priority, and 64% anticipate a favorable impact on their operations within the coming year.

Industry executives expect PEPs to drive 20% to 40% of new business growth in 2026, signaling a substantial shift in future business development. The role of distribution partners is pivotal to the expansion of PEPs, with intermediaries crucial in market introductions. By establishing their own PEPs, intermediaries enhance their engagement with plan sponsors. As of the end of 2024, consultants and retirement aggregators represented 40% of PEP assets, though large-scale opportunities are dwindling as many major firms have already partnered with recordkeepers.

As growth potential becomes apparent, competition presents new challenges. Chris Bailey, director, highlights concerns among firms not engaged in PEP recordkeeping regarding client retention and distribution partnership opportunities. "Recordkeepers are losing plan sponsors to PEPs offered by distribution partners and managed by competitors," Bailey notes. Although some firms take a cautious approach, the risk of losing market share is evident. Looking forward, Cerulli predicts continued expansion of the PEP market, with advisors and consultants increasingly including PEPs in their offerings and recordkeepers refining their capabilities, prompting larger plan sponsors to consider PEP options.