Hub woos small businesses with pooled retirement plan option

Hub woos small businesses with pooled retirement plan option
The firm's pooled employer plan gives small business owners the chance to offer workers 401(k)s at lower costs.
FEB 21, 2024

Hub is looking to extend its reach among American small business owners with the launch of a new retirement plan option. The Chicago-based insurance broker has unveiled the Hub Retirement Select PEP, a pooled employer plan geared toward independent businesses that employ fewer than 100 workers.

The plan – which Hub is offering through its wealth management arm, Hub Retirement and Private Wealth – gives small business owners the opportunity to offer their employees 401(k) retirement plans at a lower cost, and with less complexity and a reduced administrative burden.

Hub is offering its PEP under the auspices of the SECURE 2.0 Act of 2022, which offers tax incentives for small businesses to establish a retirement plan.

That legislation builds on similar tax incentives originally introduced in the SECURE Act of 2019, which planted the original seeds for PEPs as a way to address US workers’ retirement-readiness challenges by helping to close the gap in retirement plan coverage.

According to new research from Prudential Financial, American workers’ financial confidence has remained “below average” for the past two years.

By allowing multiple employers to join together, Hub says its pooled employer plan lets small business owners benefit from better service and lower costs associated with scale, as well as having access to support from full-time investment professionals that’s similar to what large companies receive.

Joe DeNoyior, president of Hub Retirement and Private Wealth. said the new pooled retirement plan option also reduces the degree of fiduciary risk independent entrepreneurs would normally associate with offering an employer-sponsored retirement plan.

“Hub is committed to helping expand the opportunity for all Americans to save for their retirement,” said DeNoyior, who assumed leadership of the company's wealth management unit two years ago.

“With Hub Retirement Select PEP, clients have another option to offer a competitive retirement plan to their employees that ultimately helps them attract talent and help employees achieve financial security and overall financial wellness," DeNoyior said in a statement.

Sallus Retirement, an independent pooled plan provider, will serve as the lead fiduciary for the new PEP. Ubiquity Retirement + Savings, an independent retirement plan provider and record keeper, is also working with Hub on the PEP.

Retiring baby boomers forcing changes in target-date funds

Latest News

Younger Americans are changing the dynamics of IRAs
Younger Americans are changing the dynamics of IRAs

Millennials, Gen Zs are not following the preferences of older generations.

How does your schedule stack up against a typical advisor?
How does your schedule stack up against a typical advisor?

Report reveals how advisors in RIAs, broker-dealers split their time.

Global stock selloff continues into a third day
Global stock selloff continues into a third day

Tariffs are the focus as risk aversity intensifies.

Gold sets new record at $3,077 as trade war fears rise
Gold sets new record at $3,077 as trade war fears rise

Havens are in demand as investors weigh likely impact of tariffs.

Why value stocks are beating growth stocks right now
Why value stocks are beating growth stocks right now

Investor concerns have triggered the rotation, although 'the bar is low'.

SPONSORED Retirement plan balances are flourishing. Why are so many advisors missing out on a $3 trillion opportunity?

Participants who receive professional 401(k) advice see higher returns on average, net, than those who don't.

SPONSORED Focus on clients, not compliance – why Gary Corderman found his fit with Farther

This wealth management platform finally delivers on the technology promises other firms couldn't - giving advisors a better way to scale and serve