Hub Retirement and Private Wealth, a division of Hub International Ltd., has unveiled a new offering tailored for small businesses looking to provide 401(k) retirement plans to their employees. The new product, called HUB Retirement Select PEP, is a pooled employer plan designed specifically for clients with fewer than 100 employees. Sallus Retirement will serve as the lead fiduciary for the plan, with Ubiquity Retirement + Savings taking on the role of recordkeeper and administrator.
This new PEP option expands Hub’s national network of retirement plan and wealth advisers and is part of the company’s ongoing growth strategy through acquisitions. One such acquisition was a high-profile deal in December to bring on AFS 401(k)’s retirement and wealth advisories.
According to Patrick Rieck, director of financial services at Hub, offering employees at small businesses the opportunity to save for retirement is a key part of the company’s mission. The Hub Retirement Select PEP powered by Sallus is just one of the many options available to Hub International clients through the Hub Retirement Select small business program. Rieck emphasizes the importance of educating wealth advisers on how this program can help them meet the needs of small business owners effectively and efficiently.
Businesses participating in Hub Retirement Select PEP will join forces with other employers, eliminating the need for separate retirement plan sponsorships and providing access to scaled pricing and services. Additionally, firms can benefit from having dedicated investment professionals overseeing employee investment choices, similar to large plan sponsors.
Hub Retirement Select PEP joins the existing Hub Retirement Select 100+ PEP, which was launched last year for employers with more than 100 employees. The company also offers single employer Hub Retirement Select retirement plans for small businesses.
The release of HUB’s latest PEP comes amidst a growing trend in 2024 towards pooled employer plans (PEPs). The Standard recently announced that it has surpassed billion in pooled employer retirement plan assets under administration, indicating a strong potential for continued growth in the PEP market this year.
Ted Schmelzle, second vice president of retirement plan services at The Standard, highlighted the company’s PEP strategy as a natural extension of their standalone plans, emphasizing their commitment to customer service, fiduciary responsibility, and providing easy-to-implement solutions for employers.