Principal® and Lockton Increase Businesses’ Access to Sophisticated Retirement Options as Clients Rapidly Join New Pooled Employer Plan

About this update from Principal Financial Group Inc

Mid-to-large market plans increasingly joining small businesses in taking advantage of PEP launched in January DES MOINES, Iowa--(BUSINESS WIRE)-- Within the first several months of the Principal Financial Group® and Lockton Investment Advisors, LLC launch of a new pooled employer plan (PEP), dozens of employers with plans ranging from $10M to more than $300M in assets under management have adopted the plan or are looking to do so. This interest in a PEP from mid-to-large employers indicates the potential of more widespread uptake of these plans in addition to use by small businesses. These adopting businesses have liked the PEP’s ease of use, the ability to outsource administrative and fiduciary work, and institutional investment cost savings. Known as the (k)PraetorianTM Retirement Plan, Principal and Lockton’s new PEP provides access to innovative investment management and transfers administrative and fiduciary burdens to specialized industry professionals. The plan seeks to meet the pressing needs of employers looking to strengthen retirement savings outcomes for their employees. Principal® research shows that only 16% of U.S. businesses feel confident that their employees are saving enough for retirement.1 “The SECURE Act and PEPs can help boost smaller plans that have less time and financial resources to spend on benefits, but the success of this new offering indicates the need for more efficient and impactful retirement plans for the larger employer market as well,” said Jerry Patterson, senior vice president, Retirement and Income Solutions at Principal. “Tom Clark and Mike Duckett from Lockton shared an early vision for how to approach the PEP market. We chose to collaborate with them to leverage Lockton’s extensive plan and investment insight to create a unique and innovative solution for the mid-to-large market that is already being proven to be of interest for dozens of employers.” The (k)PraetorianTM plan is attracting employers across diverse industries ranging from medical and pharmaceutical to technology, manufacturing, and financial services. In addition to (k)PraetorianTM’s tailored plan design, employers say they are switching to the plan because it removes much of the plan administration and fiduciary stress of ERISA compliance and liability, as well as providing education and services that help employees build a more secure retirement...

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