Lincoln adds new PEPs to its group retirement shelf

Lincoln Financial Group is beefing up its shelf of retirement plan offerings with two new solutions, one for businesses and the other for not-for-profit organizations.

Named FlexPEP(k) and FlexPEP(b), the company’s newest pooled employer plans cater to 401(k) and 403(b) plans, respectively, and are part of Lincoln’s effort to meet employers’ evolving needs for retirement benefits.

Positioned to streamline retirement plan administration, reduce costs, and improve fiduciary oversight for employers, these solutions emerge as Lincoln Financial seeks to broaden the understanding and uptake of PEPs among its clients.

"We’re seeing an uptick in the adoption of group plan solutions,” Matt Condos, senior vice president of retirement plan services product solutions at Lincoln Financial, said in a statement.

Condos highlighted the SECURE Act and SECURE 2.0’s catalytic role in encouraging PEPs, adding that there’s still room for businesses and nonprofits to “[get] more positive outcomes from their retirement benefits.”

There’s a well-established body of research showing a gap in workplace retirement readiness, with small employers less likely to offer retirement plans. Small to midsize businesses and not-for-profits also often struggle with the expenses and administrative complexities involved.

New research from Lincoln Financial adds another facet, with its 2024 Financial Concerns Report showing that three-fifths of all US adults surveyed worry about having enough income in retirement. Gen Xers led the trend, with two-thirds (64 percent) sharing that concern.

Both the FlexPEP(k) and FlexPEP(b) plans are set to provide a comprehensive service model, the company says, with in-plan guaranteed income solutions and the potential for reduced plan costs through group plan discounts. The plans also offer flexibility in investment options, catering to the varied financial needs and goals of employees.

Smart Retirement Solutions Inc. will act as the pooled plan provider, with Envestnet serving as the 3(38) investment provider.

“With Envestnet’s industry comprehensive and industry-leading wealth management platform, we aim to empower employers to support their employees in achieving their retirement goals,” said Sean Murray, head of Envestnet Workplace.  

“We’re excited to expand our relationship with Lincoln in providing PEPs as solutions in the 401(k) and 403(b) marketplace,” said Tina Anstett, head of fiduciary services at Smart Retirement Solutions.