Reimagining Pooled Employer Plans in 2026

Why the Right PEP Looks Very Different Than It Did After the SECURE Act

Guest author Tom Krusic is a Financial Consultant at intellicents, a trusted Würk partner. Tom’s extensive knowledge regarding corporate retirement plans, employee education, and personal financial planning enables him to clearly chart the best path for his clients throughout all phases of their financial journey. His expertise in retirement planning, qualified retirement plans, financial planning, and wealth management has been critical in helping our Würk clients reach their personal financial goals.

When the SECURE Act introduced Pooled Employer Plans (PEPs), the retirement industry moved fast…but not always thoughtfully. Early adoption brought scale and promise, along with confusion, uneven execution, and understandable skepticism from employers who value control, customization, and fiduciary clarity.

Fast forward to 2026, and the conversation has changed. 

Today’s leading employers, especially in highly regulated, fast-growing industries like cannabis, are no longer asking “What is a PEP?” They’re asking “Which PEP is built to actually work for us?”

At intellicents, we hear a common refrain from prospects: “We’re not interested in a PEP. We want flexibility, control, and protection.”

Ironically, those exact concerns are why employers are now choosing modern PEPs like the Seeds to Dreams Savings Plan.

Let’s address the most common objections head-on and discuss why they no longer apply.

Objection #1: “Pooled Employer Plans Take Away Employer Control”

The early reality:
Some first-generation PEPs were overly rigid with one-size-fits-all investment menus, limited plan design options, and little transparency around who was actually responsible for what.

The 2026 reality:
A properly designed PEP removes administrative burden without stripping strategic control.

With the Seeds to Dreams Savings Plan, employers retain meaningful flexibility over the elements that matter most, including eligibility, vesting, and contribution design, safe harbor provisions, and automatic enrollment and escalation features. What changes is who carries the operational and fiduciary weight.

Seeds to Dreams is led by a registered Pooled Plan Provider (PPP) that assumes the role of plan sponsor and named fiduciary, while intellicents serves as a 3(38) investment manager and fiduciary quarterback, sitting on the employer’s side of the table.

Translation: You stay strategic. We handle the risk, documentation, and execution.

Objection #2: “Pooled Employer Plans Increase Fiduciary Risk”

The early misconception:
That pooling employers together somehow meant shared liability or exposure to other companies’ mistakes.

The regulatory truth:
Under ERISA, adopting employers are not responsible for the failures of other employers in a PEP, provided the PEP is properly structured and governed.

Key Aspects of PEPs and the “One Bad Apple” Rule:

• The Original Rule: Traditionally, Multiple Employer Plans (MEPs) operated under a “unified plan rule” (the “one bad apple” rule), where a single employer’s failure to meet tax-qualification standards could disqualify the entire plan for everyone.
• The PEP Exception: The SECURE Act eliminated this risk for PEPs, meaning that if one participating employer fails to comply with IRS/ERISA rules, the entire plan is not automatically disqualified.
• The Solution: If an employer is noncompliant (an “unresponsive participating employer”), the PEP is required to remove (spin off) that employer’s assets and liabilities into a separate plan, protecting the other employers

Seeds to Dreams was built specifically to address this concern:

• A dedicated PPP registered with the Department of Labor
• 3(16) administrative fiduciary services handled by Finway Group
• 3(38) investment fiduciary responsibility assumed by intellicents
• One Form 5500 and one audit at the PEP level (not per employer)

This dramatically reduces fiduciary exposure, documentation risk, and audit complexity. This is particularly significant for cannabis employers who already face heightened scrutiny.

Objection #3: “Pooled Employer Plans Don’t Work for Complex or Regulated Industries”

The old assumption:
That PEPs were best suited for small, homogeneous businesses but were not a good fit for multi-entity, regulated operators.

The Seeds to Dreams difference:
This plan was purpose-built for the U.S. cannabis industry, leveraging intellicents’ experience serving cannabis employers since 2018, which was long before most providers were willing to engage.

What that means in practice:

• Cannabis-compliant AML, KYC, and ownership diligence built into onboarding
• Banking, payroll, and trust workflows vetted specifically for cannabis operators
• Deep understanding of controlled group, ownership, and EIN complexity
• Ability to manage multiple divisions and bank accounts for cash management enhancements

Seeds to Dreams isn’t adapting a generic PEP to cannabis. It was designed from the ground up to serve it.

Objection #4: “Pooled Employer Plans Are About Cost, Not Outcomes”

The outdated framing:
That PEPs are simply a cheaper 401(k).

The modern reality:
Leading employers are choosing PEPs because they deliver better participant outcomes, not just lower line-item costs.

Powered by Empower, Seeds to Dreams gives employees access to:

• A single financial dashboard showing retirement, savings, debt, and spending
• Personalized advice, managed accounts, and financial wellness tools
• Targeted, automated communications that drive participation and deferral increases
• Multilingual support and award-winning mobile technology

For employers, the impact is tangible across the business. Higher participation and deferral rates strengthen the overall health of the plan, while more competitive benefits directly support recruiting and retention efforts. At the same time, streamlined administration reduces internal HR lift, and the result is a benefits strategy that is both defensible and grounded in fiduciary responsibility.8888

Why Employers Are Choosing Pooled Employer Plans Now

The employers adopting PEPs in 2026 aren’t chasing trends, they’re responding to reality. HR teams are stretched thin, fiduciary risk is on the rise, and compliance expectations continue to climb. Meanwhile, employees increasingly expect more from their workplace benefits. The pressure is coming from every direction, and the most forward-thinking employers are acting accordingly.

The difference today is that PEPs have matured.

With the right partners, governance, and industry expertise, a PEP is no longer a compromise. It’s a strategic advantage.

The Bottom Line

If your impression of Pooled Employer Plans was shaped by early SECURE Act headlines, it’s time for a second look.

Seeds to Dreams represents the next generation of PEPs. It was built specifically for regulated industries and designed from the ground up around fiduciary protection. It’s flexible where it matters and outsourced where it counts, with a singular focus on delivering real outcomes for employees.

For many employers, the question is no longer “Why should we have a PEP?”
It’s “Why wouldn’t we?”

Whether you’re a single‑state operator or a multi‑state cannabis business, Würk helps simplify retirement plans for your company.

Disclosures
This article is provided for general informational purposes only and should not be construed as legal, tax, or investment advice. Employers should consult their ERISA counsel and other professional advisors regarding their specific situation.

References to ERISA fiduciary roles (including 3(16) and 3(38 are general in nature; responsibilities and allocation of duties depend on plan documents and service agreements. Adopting employers typically retain responsibilities including prudent selection and ongoing monitoring of service providers and fees.
Any statements regarding potential benefits (including participation, deferral rates, administrative efficiency, or participant outcomes) are not guarantees; results may vary based on plan design, workforce demographics, market conditions, and implementation.

Third-party firms and platforms referenced (including Würk, Empower, and Finway Group) are separate entities. Any services performed by such parties are governed by their respective agreements and disclosures.
Discussion of processes related to regulated industries (including cannabis) is general in nature and subject to change; compliance obligations vary by facts and applicable law.

Investment advisory services offered through intellicents investment solutions, inc., an SEC registered investment adviser.