Recordkeepers Prioritize Pooled Employer Plans for Organic Growth, Cerulli Finds

Pooled employer plans have moved from a niche product to a central competitive battleground for retirement recordkeepers, with 60% already offering PEP recordkeeping and more planning to do so within the next 12 months, according to Cerulli Associates. Seventy-one percent of recordkeepers now call PEPs a moderate or major strategic priority, and 64% expect them to have a positive impact on their business in the coming year.

The stakes are significant. Several industry executives told Cerulli that recordkeepers expect 20% to 40% of new business growth in 2026 to come through PEPs — and that within a few years, most new business could flow through the structure entirely. Consultants and retirement aggregators together controlled 40% of PEP assets as of year-end 2024, making distribution partnerships a central factor in who wins market share.

“Recordkeepers are starting to find themselves losing plan sponsors to PEPs that are offered by distribution partners and recordkept by competitors. Concerns about retaining existing business and missed opportunities for distribution partnerships are beginning to emerge for those that do not recordkeep PEPs or offer one of their own,” said Chris Bailey, director, Cerulli Associates.

The opportunity is narrowing for late entrants. Many large advisor and consultant firms have already partnered with recordkeepers to launch PEPs, leaving fewer major distribution relationships unclaimed.

Cerulli expects the market to continue expanding as more advisors and consultants offer proprietary PEPs, recordkeepers build out capabilities, and larger plan sponsors begin exploring adoption — a shift that could fundamentally reshape how defined contribution assets are gathered and retained.