New Ameritas 403(b) PEP Brings Retirement Plan Options to Nonprofits

May 28, 2024 |read icon 4 min read
A nonprofit director stands in front of her team in a conference room giving a presentation about their new 403(b) retirement plan.

For nonprofit organizations seeking to hire top talent, the ability to offer a suite of attractive benefits is critical in a tight labor market. Traditional 403(b) retirement plans have been available to nonprofits for some time; however, given their administrative requirements, they aren’t always a viable choice for nonprofits with limited resources. Now, Ameritas retirement plans is helping nonprofit organizations sponsoring ERISA 403(b) plans offer retirement plans with lower costs and administrative workload with its Ameritas 403(b) PEP program.

Pooled employer plans, or PEPs, allow multiple organizations of differing sizes and demographics to join a single retirement plan. Along with pooled purchasing power, a PEP can provide relief to nonprofits who are wary of the administrative burden and fiduciary liability that comes with offering their employees a retirement plan. This means that nonprofits who may not be able to compete with for-profit businesses on salary can still offer a top-notch retirement plan benefit—which could be a game changer for many institutions.

The Ameritas advantage

Although Ameritas is an early entrant into the ERISA 403(b) PEP market, we’re able to leverage our deep experience in 401(k) pooled employer plans tailored to the for-profit marketplace. “One of the provisions of the Secure 2.0 Act of 2022 was that 403(b) plans are now allowed to be part of PEPs,” explains Scott Holechek, vice president, institutional sales, retirement plans. “Because of our expertise in the pooled employer market, we knew we could be an asset to our financial professionals who were looking for opportunities to start the conversation about retirement plans with their nonprofit clients.”

Brett Eisberg, director, product management, agrees. “While we’re not the first entrant in the 403(b) PEP market, we’ve entered the field with a product that’s based on the same design as our very successful 401(k) PEP program,” he explains. “Our financial professionals who work with both for-profit and nonprofit organizations don’t need to learn an entirely new product. The 403(b) PEP looks and feels quite a bit like what they already know, so they can present it with confidence to a new market segment.”

The Ameritas 403(b) PEP is designed with additional features that nonprofits may find particularly attractive, such as a low-cost investment menu, managed account option and a fully fee-transparent NAV platform.

“Our goal is to help bring the powerful tools of this retirement program to nonprofits who otherwise may not be able to manage the requirements as easily on their own—including filing all the forms and performing an audit,” says Scott. “With the Ameritas 403(b) PEP, they can share the cost of the audit with other employers, and not have an auditor in their workplace for 30 to 40 hours a year. Employers can also outsource recordkeeping and fiduciary responsibilities to trusted third-party entities who are part of the PEP program, making it a turnkey experience. We’re starting to see more interest from the larger nonprofits to explore these tools, and we’re glad to support them in giving the best possible benefits to their employees.”

In addition to its new Ameritas 403(b) PEP, Ameritas also offers the Ameritas 401(k) PEP tailored to for-profit businesses. For more information about the Ameritas 403(b) PEP, visit Ameritas 403(b) Plan Pooled Employer Plan.

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