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Standard Insurance PEP assets surpass $5 billion as market grows
The pooled employer plan market reached an estimated $34 billion in assets by end-2025, with participating employers rising from about 8,600 to more than 51,000 since the PEP structure launched in 2021.
Small employer adoption of pooled employer plans is accelerating, with industry data tracked from Department of Labor filings showing the PEP market held an estimated $34 billion in assets at the end of 2025. That compares with $2.2 billion when the structure launched in 2021, according to Insurance Business.
Separate figures from Cerulli Associates cited by the outlet show participating employers grew from roughly 8,600 to more than 51,000 over the same period. The Standard Insurance Company said this week it has surpassed $5 billion in PEP assets under administration, a level the outlet says corresponds to about 15 percent of the market for a single provider, signaling rising concentration among established players.
A PEP is a retirement vehicle that lets multiple unrelated employers participate in one plan while delegating most administrative and fiduciary responsibilities to a pooled plan provider, and investment oversight to a registered investment manager. Insurance Business notes that under a pooled structure, a single Form 5500 can cover all participating employers, and plan audits are handled at the pooled level rather than individually, reducing several annual sponsor obligations.
The outlet also highlights that the SECURE Act of 2019 created the structure, with PEPs becoming operational in January 2021, and that The Standard was among the earliest providers. It adds that in July 2026, The Standard expanded its PEP offering to include an ERISA 403(b) option for nonprofit organizations, extending the approach beyond 401(k) plans.