--- title: SEPs, MEPs and PEPs – Discover the Differences and Ideas for Your Workplace Retirement Plan description: What are SEPs, MEPs and PEPs? Which one is right for your company’s retirement plan? image: https://www.bjorkgroup.com/hubfs/Headline%20Image%20-%20SEPs%2c%20MEPs%20and%20PEPs.jpg --- [BjorkGroup ![bjork group](https://www.bjorkgroup.com/hubfs/images/logo.png)](https://www.bjorkgroup.com/) ![bjork group](https://www.bjorkgroup.com/hs-fs/hubfs/images/print-logo.jpg?width=285&height=37&name=print-logo.jpg) Toggle navigation - [Benefits Consulting](https://www.bjorkgroup.com/benefits-consulting-services) - [Health & Wellness](https://www.bjorkgroup.com/benefits-consulting-services/health-and-wellness) - [HR Administration](https://www.bjorkgroup.com/benefits-consulting-services/hr-administration) - [Employee Onboarding](https://www.bjorkgroup.com/benefits-consulting-services/employee-onboarding) - [Regulatory & Compliance Solutions](https://www.bjorkgroup.com/benefits-consulting-services/regulatory_and_compliance_solutions) - [Retirement](https://www.bjorkgroup.com/benefits-consulting-services/retirement) - [Employee Communication & Enrollment](https://www.bjorkgroup.com/benefits-consulting-services/employee-communication-and-enrollment) - [Payroll](https://www.bjorkgroup.com/benefits-consulting-services/payroll) - [Cost Benchmarking & Optimization](https://www.bjorkgroup.com/benefits-consulting-services/cost_benchmarking_and_optimization) - [Technology](https://www.bjorkgroup.com/technology) - [Benefits Administration Systems](https://www.bjorkgroup.com/technology/benefits-administration-systems) - [HR Data Analytics](https://www.bjorkgroup.com/technology/hr-data-analytics) - [Private Insurance Exchange Solutions](https://www.bjorkgroup.com/technology/private-insurance-exchange-solutions) - [By Company Size](https://www.bjorkgroup.com/solutions-by-company-size) - [Small (2–99)](https://www.bjorkgroup.com/solutions-by-company-size/small-two-ninety-nine) - [Medium (100–1,000)](https://www.bjorkgroup.com/solutions-by-company-size/medium-one-hundred-one-thousand) - [Large (1,000+)](https://www.bjorkgroup.com/solutions-by-company-size/large-one-thousand-plus) - [Resources](https://www.bjorkgroup.com/resources) - [Case Studies](https://www.bjorkgroup.com/case-studies) - [White Papers](https://www.bjorkgroup.com/white-papers) - [About Us](https://www.bjorkgroup.com/about-us) - [Our History](https://www.bjorkgroup.com/about-us/our-history) - [Our Values](https://www.bjorkgroup.com/about-us/our-values) - [Blog](https://www.bjorkgroup.com/blog) - [Contact Us](https://www.bjorkgroup.com/contact-us) ![img description](https://www.bjorkgroup.com/hubfs/images/banner-img03.jpg) # Blog - Blog ## SEPs, MEPs and PEPs – Discover the Differences and Ideas for Your Workplace Retirement Plan - Bjork Group - August 2, 2021 ![Headline Image - SEPs, MEPs and PEPs](https://www.bjorkgroup.com/hs-fs/hubfs/Headline%20Image%20-%20SEPs%2c%20MEPs%20and%20PEPs.jpg?width=2917&name=Headline%20Image%20-%20SEPs%2c%20MEPs%20and%20PEPs.jpg) Just ask anyone: Uncle Sam and the retirement industry love acronyms. Another was added in December 2020—PEP—which conveniently rhymes with MEP and SEP. The three plan types are 401(k) cousins[\[1\]](https://www.bjorkgroup.com/blog/seps-meps-and-peps-discover-the-differences-and-ideas-for-your-workplace-retirement-plan#_ftn1) meaning they share many fundamental similarities, and their main differences relate to the administrative models they use. If you don’t speak fluent tax code or understand complex legal jargon, you are in the right place! We’re going to break down a few of the 401(k) abbreviations you may have heard about lately because once you know what the acronyms stand for, they really start to make sense.   ### What is a SEP? A **Single Employer Plan** (SEP)[\[2\]](https://www.bjorkgroup.com/blog/seps-meps-and-peps-discover-the-differences-and-ideas-for-your-workplace-retirement-plan#_ftn2) is, as the name implies, sponsored by a single employer, including any controlled or affiliated group members. This is what most people think of when referencing a traditional 401(k) plan. A SEP is often the plan of choice for large, medium and small businesses as it can be easily customized to meet specific company needs. With a SEP, employers have total control over plan decisions and can work with a retirement plan specialist to help with fiduciary responsibilities.   ### What is a MEP? A **Multiple Employer Plan (**MEP) is a retirement savings plan where multiple employers participate in a single plan. It is sponsored by one entity and adopted by one or more others, but here is the kicker: they need to share a common thread. Participating employers can’t be related tax-wise but they are often members of an association or professional employment organization. While there are various ways to set up a Multiple Employer Plan, to keep it simple, when we use the MEP acronym in this article, we are referring to a closed MEP. Member companies of a closed MEP are not required to file an individual 5500 report, undergo an annual plan audit and acquire individual ERISA bond protection.   ### **What is a PEP?** A **Pooled Employer Plan** (PEP) is a pooled retirement plan, a type of Multiple Employer Plan that allows two or more unrelated employers to participate in a single plan. It’s the new kid on the block, created by the SECURE Act of 2020 with an effective date of January 1, 2021. A PEP is offered by a group of employers who outsource all administration to yet another acronym—a PPP, or Pooled Plan Provider—a 3(16) fiduciary who establishes and administers the PEP. The PPP is an important part of the PEP and has three fundamental models:[\[3\]](https://www.bjorkgroup.com/blog/seps-meps-and-peps-discover-the-differences-and-ideas-for-your-workplace-retirement-plan#_ftn3) - PPP is a TPA or advisor with no service provider affiliates or proprietary funds in a completely unbundled and unconflicted situation. - PPP selects either affiliates as service providers or proprietary funds in a partially bundled solution. - PPP uses affiliates and proprietary funds in a fully bundled approach.   ### How Do They Stack Up? As with any solution, there are advantages and disadvantages; the same is true for selecting a type of 401(k) plan. There are so many variable options with each plan type, so here are a few key points to consider: **Customization:** SEPs offer the highest level of customization as each employer can build a plan to meet their specific goals. By contrast, MEPs and PEPs are built with the best interests of many in mind so individual employers may be limited on the elements they can customize. **Time Commitment:** One of the key benefits associated with MEPs and PEPs is the ability to outsource administrative duties. This same sentiment is true within a SEP when you select specialized service providers committed to taking on fiduciary duties. **Responsibility:** No matter what, if you offer a retirement plan to your employees, you will carry some level of fiduciary responsibility. All 401(k)s plans allow you to offload plan operations and investment decisions to 3(16) Plan Administrator and a 3(38) Discretionary Advisor; the main difference with MEPs and PEPs is that both are determined by the plan; whereas, with a SEP, you have the ability to select all service providers. **Tenure:** SEPs and MEPs have been around for a long time and are known entities. PEPs are still fresh out of the box and their effectiveness has yet to be determined.   Have questions? Call us today or schedule a virtual conversation to discuss which plan type could be best for your business.   Sean C. Bjork, CIMA®, AIF® Vice President Bjork Group 1033 Skokie Boulevard, Suite 210 Northbrook, IL. 60062 p.312.464.7082 seanbjork@bjorkgroup.com [www.bjorkgroup.com](https://www.bjorkgroup.com)   Employee benefit consulting offered through The Bjork Group, Inc. Securities and Retirement Plan Consulting Program advisory services provided by Bjork Asset Management, Inc. offered through LPL Financial, a registered investment advisor, member FINRA/SIPC. Other advisory services offered through Independent Financial Partners (IFP), a registered investment advisor. IFP, Bjork Asset Management, Inc. and The Bjork Group, Inc. are separate entities from LPL Financial. [\[1\]](https://www.bjorkgroup.com/blog/seps-meps-and-peps-discover-the-differences-and-ideas-for-your-workplace-retirement-plan#_ftnref1) A MEP can also be a defined benefit plan. [\[2\]](https://www.bjorkgroup.com/blog/seps-meps-and-peps-discover-the-differences-and-ideas-for-your-workplace-retirement-plan#_ftnref2) SEP can also refer to a Simplified Employer Plan, an IRA-based plan for self-employed individuals or small business owners with a few employees. [\[3\]](https://www.bjorkgroup.com/blog/seps-meps-and-peps-discover-the-differences-and-ideas-for-your-workplace-retirement-plan#_ftnref3) [Moore, Rebecca. “The PEP Opportunity.” Plansponsor.com. September 2, 2020.](https://www.plansponsor.com/in-depth/the-pep-opportunity/)   ![Image](https://www.bjorkgroup.com/hubfs/images/dummy-img.jpg) Share THIS POST - [mailto:?body=Check%20out%20this%20blog%20post:%20https://www.bjorkgroup.com/blog/seps-meps-and-peps-discover-the-differences-and-ideas-for-your-workplace-retirement-plan](mailto:?body=Check%20out%20this%20blog%20post:%20https://www.bjorkgroup.com/blog/seps-meps-and-peps-discover-the-differences-and-ideas-for-your-workplace-retirement-plan) - - - - ### Categories ### Categories - [Administration (58)](https://www.bjorkgroup.com/blog/topic/administration) - [Retirement Savings (55)](https://www.bjorkgroup.com/blog/topic/retirement-savings) - [Employee Benefits (48)](https://www.bjorkgroup.com/blog/topic/employee-benefits) - [Wellness (37)](https://www.bjorkgroup.com/blog/topic/wellness) - [Retirement Plan Insights (33)](https://www.bjorkgroup.com/blog/topic/retirement-plan-insights) - [Employer News and Information (26)](https://www.bjorkgroup.com/blog/topic/employer-news-and-information) - [HR Training and Support (21)](https://www.bjorkgroup.com/blog/topic/hr-training-and-support) - [Workplace Productivity (12)](https://www.bjorkgroup.com/blog/topic/workplace-productivity) - [Technology (9)](https://www.bjorkgroup.com/blog/topic/technology) - [Cost of Healthcare (5)](https://www.bjorkgroup.com/blog/topic/cost-of-healthcare) - [Analytics (3)](https://www.bjorkgroup.com/blog/topic/analytics) - [Workplace Compliance Safety and ACA Training (3)](https://www.bjorkgroup.com/blog/topic/workplace-compliance-safety-and-aca-training) - [Charity (1)](https://www.bjorkgroup.com/blog/topic/charity) - [Giving (1)](https://www.bjorkgroup.com/blog/topic/giving) - [Mobile (1)](https://www.bjorkgroup.com/blog/topic/mobile) - [Music (1)](https://www.bjorkgroup.com/blog/topic/music) - [Telehealth (1)](https://www.bjorkgroup.com/blog/topic/telehealth) - [Voluntary Benefits (1)](https://www.bjorkgroup.com/blog/topic/voluntary-benefits) see all - ### Recent Posts ### Recent Posts - ### Archive ### Archive - [August 2026 (1)](https://www.bjorkgroup.com/blog/archive/2026/08) - [July 2026 (1)](https://www.bjorkgroup.com/blog/archive/2026/07) - [June 2026 (1)](https://www.bjorkgroup.com/blog/archive/2026/06) - [April 2026 (2)](https://www.bjorkgroup.com/blog/archive/2026/04) - [March 2026 (1)](https://www.bjorkgroup.com/blog/archive/2026/03) - [February 2026 (1)](https://www.bjorkgroup.com/blog/archive/2026/02) - [January 2026 (1)](https://www.bjorkgroup.com/blog/archive/2026/01) - [December 2025 (1)](https://www.bjorkgroup.com/blog/archive/2025/12) - [November 2025 (1)](https://www.bjorkgroup.com/blog/archive/2025/11) - [October 2025 (1)](https://www.bjorkgroup.com/blog/archive/2025/10) - [August 2025 (2)](https://www.bjorkgroup.com/blog/archive/2025/08) - [July 2025 (1)](https://www.bjorkgroup.com/blog/archive/2025/07) - [May 2025 (2)](https://www.bjorkgroup.com/blog/archive/2025/05) - [April 2025 (1)](https://www.bjorkgroup.com/blog/archive/2025/04) - [February 2025 (2)](https://www.bjorkgroup.com/blog/archive/2025/02) - [January 2025 (1)](https://www.bjorkgroup.com/blog/archive/2025/01) - [November 2024 (1)](https://www.bjorkgroup.com/blog/archive/2024/11) - [October 2024 (2)](https://www.bjorkgroup.com/blog/archive/2024/10) - [September 2024 (1)](https://www.bjorkgroup.com/blog/archive/2024/09) - [August 2024 (1)](https://www.bjorkgroup.com/blog/archive/2024/08) - [July 2024 (2)](https://www.bjorkgroup.com/blog/archive/2024/07) - [June 2024 (1)](https://www.bjorkgroup.com/blog/archive/2024/06) - [May 2024 (1)](https://www.bjorkgroup.com/blog/archive/2024/05) - [April 2024 (1)](https://www.bjorkgroup.com/blog/archive/2024/04) - [March 2024 (1)](https://www.bjorkgroup.com/blog/archive/2024/03) - [February 2024 (1)](https://www.bjorkgroup.com/blog/archive/2024/02) - [January 2024 (1)](https://www.bjorkgroup.com/blog/archive/2024/01) - [November 2023 (1)](https://www.bjorkgroup.com/blog/archive/2023/11) - [October 2023 (2)](https://www.bjorkgroup.com/blog/archive/2023/10) - [September 2023 (1)](https://www.bjorkgroup.com/blog/archive/2023/09) - [August 2023 (1)](https://www.bjorkgroup.com/blog/archive/2023/08) - [July 2023 (2)](https://www.bjorkgroup.com/blog/archive/2023/07) - [June 2023 (1)](https://www.bjorkgroup.com/blog/archive/2023/06) - [May 2023 (1)](https://www.bjorkgroup.com/blog/archive/2023/05) - [April 2023 (2)](https://www.bjorkgroup.com/blog/archive/2023/04) - [March 2023 (1)](https://www.bjorkgroup.com/blog/archive/2023/03) - [February 2023 (1)](https://www.bjorkgroup.com/blog/archive/2023/02) - [January 2023 (2)](https://www.bjorkgroup.com/blog/archive/2023/01) - [December 2022 (1)](https://www.bjorkgroup.com/blog/archive/2022/12) - [November 2022 (1)](https://www.bjorkgroup.com/blog/archive/2022/11) - [October 2022 (2)](https://www.bjorkgroup.com/blog/archive/2022/10) - [September 2022 (1)](https://www.bjorkgroup.com/blog/archive/2022/09) - [August 2022 (2)](https://www.bjorkgroup.com/blog/archive/2022/08) - [July 2022 (2)](https://www.bjorkgroup.com/blog/archive/2022/07) - [June 2022 (1)](https://www.bjorkgroup.com/blog/archive/2022/06) - [May 2022 (3)](https://www.bjorkgroup.com/blog/archive/2022/05) - [April 2022 (2)](https://www.bjorkgroup.com/blog/archive/2022/04) - [March 2022 (2)](https://www.bjorkgroup.com/blog/archive/2022/03) - [February 2022 (2)](https://www.bjorkgroup.com/blog/archive/2022/02) - [January 2022 (3)](https://www.bjorkgroup.com/blog/archive/2022/01) - [December 2021 (1)](https://www.bjorkgroup.com/blog/archive/2021/12) - [November 2021 (4)](https://www.bjorkgroup.com/blog/archive/2021/11) - [October 2021 (3)](https://www.bjorkgroup.com/blog/archive/2021/10) - [September 2021 (2)](https://www.bjorkgroup.com/blog/archive/2021/09) - [August 2021 (3)](https://www.bjorkgroup.com/blog/archive/2021/08) - [July 2021 (2)](https://www.bjorkgroup.com/blog/archive/2021/07) - [June 2021 (2)](https://www.bjorkgroup.com/blog/archive/2021/06) - [May 2021 (3)](https://www.bjorkgroup.com/blog/archive/2021/05) - [April 2021 (2)](https://www.bjorkgroup.com/blog/archive/2021/04) - [March 2021 (3)](https://www.bjorkgroup.com/blog/archive/2021/03) - [February 2021 (3)](https://www.bjorkgroup.com/blog/archive/2021/02) - [January 2021 (2)](https://www.bjorkgroup.com/blog/archive/2021/01) - [December 2020 (1)](https://www.bjorkgroup.com/blog/archive/2020/12) - [November 2020 (4)](https://www.bjorkgroup.com/blog/archive/2020/11) - [October 2020 (4)](https://www.bjorkgroup.com/blog/archive/2020/10) - [September 2020 (2)](https://www.bjorkgroup.com/blog/archive/2020/09) - [August 2020 (3)](https://www.bjorkgroup.com/blog/archive/2020/08) - [July 2020 (2)](https://www.bjorkgroup.com/blog/archive/2020/07) - [June 2020 (2)](https://www.bjorkgroup.com/blog/archive/2020/06) - [May 2020 (3)](https://www.bjorkgroup.com/blog/archive/2020/05) - [April 2020 (5)](https://www.bjorkgroup.com/blog/archive/2020/04) - [March 2020 (3)](https://www.bjorkgroup.com/blog/archive/2020/03) - [February 2020 (3)](https://www.bjorkgroup.com/blog/archive/2020/02) - [January 2020 (3)](https://www.bjorkgroup.com/blog/archive/2020/01) - [December 2019 (4)](https://www.bjorkgroup.com/blog/archive/2019/12) - [November 2019 (3)](https://www.bjorkgroup.com/blog/archive/2019/11) - [October 2019 (2)](https://www.bjorkgroup.com/blog/archive/2019/10) - [September 2019 (2)](https://www.bjorkgroup.com/blog/archive/2019/09) - [August 2019 (2)](https://www.bjorkgroup.com/blog/archive/2019/08) - [July 2019 (4)](https://www.bjorkgroup.com/blog/archive/2019/07) - [June 2019 (2)](https://www.bjorkgroup.com/blog/archive/2019/06) - [May 2019 (3)](https://www.bjorkgroup.com/blog/archive/2019/05) - [April 2019 (3)](https://www.bjorkgroup.com/blog/archive/2019/04) - [March 2019 (2)](https://www.bjorkgroup.com/blog/archive/2019/03) - [February 2019 (2)](https://www.bjorkgroup.com/blog/archive/2019/02) - [January 2019 (5)](https://www.bjorkgroup.com/blog/archive/2019/01) - [December 2018 (2)](https://www.bjorkgroup.com/blog/archive/2018/12) - [November 2018 (3)](https://www.bjorkgroup.com/blog/archive/2018/11) - [October 2018 (4)](https://www.bjorkgroup.com/blog/archive/2018/10) - [September 2018 (1)](https://www.bjorkgroup.com/blog/archive/2018/09) - [August 2018 (1)](https://www.bjorkgroup.com/blog/archive/2018/08) - [July 2018 (1)](https://www.bjorkgroup.com/blog/archive/2018/07) - [December 2017 (1)](https://www.bjorkgroup.com/blog/archive/2017/12) - [November 2017 (1)](https://www.bjorkgroup.com/blog/archive/2017/11) - [October 2017 (1)](https://www.bjorkgroup.com/blog/archive/2017/10) - [August 2017 (1)](https://www.bjorkgroup.com/blog/archive/2017/08) - [March 2017 (1)](https://www.bjorkgroup.com/blog/archive/2017/03) - [February 2017 (1)](https://www.bjorkgroup.com/blog/archive/2017/02) - [November 2016 (2)](https://www.bjorkgroup.com/blog/archive/2016/11) - [October 2016 (1)](https://www.bjorkgroup.com/blog/archive/2016/10) - [September 2016 (1)](https://www.bjorkgroup.com/blog/archive/2016/09) - [July 2016 (1)](https://www.bjorkgroup.com/blog/archive/2016/07) - [June 2016 (2)](https://www.bjorkgroup.com/blog/archive/2016/06) - [May 2016 (2)](https://www.bjorkgroup.com/blog/archive/2016/05) - [April 2016 (1)](https://www.bjorkgroup.com/blog/archive/2016/04) - [March 2016 (2)](https://www.bjorkgroup.com/blog/archive/2016/03) - [February 2016 (2)](https://www.bjorkgroup.com/blog/archive/2016/02) - [January 2016 (3)](https://www.bjorkgroup.com/blog/archive/2016/01) - [November 2015 (2)](https://www.bjorkgroup.com/blog/archive/2015/11) - [October 2015 (1)](https://www.bjorkgroup.com/blog/archive/2015/10) see all ![img descripion](https://www.bjorkgroup.com/hubfs/images/img18.png) # GET IN TOUCH #### Excellent customer service is something we pride ourselves on, so please do not hesitate to reach out with any questions you may have. [![Contact Us](https://no-cache.hubspot.com/cta/default/453572/2bb1c3e2-85c4-4743-8699-eee1b9187d65.png)](https://cta-redirect.hubspot.com/cta/redirect/453572/2bb1c3e2-85c4-4743-8699-eee1b9187d65) - [Benefits Consulting](https://www.bjorkgroup.com/benefits-consulting-services) - [Technology](https://www.bjorkgroup.com/technology) - [By Company Size](https://www.bjorkgroup.com/solutions-by-company-size) - [Resources](https://www.bjorkgroup.com/resources) - - - - [About Us](https://www.bjorkgroup.com/about-us) - [Blog](https://www.bjorkgroup.com/blog) - [Contact Us](https://www.bjorkgroup.com/contact-us) - [Join Our Team](https://www.bjorkgroup.com/contact-us) © 2015 [Bjork Group, Inc](https://www.bjorkgroup.com/). - All Rights Reserved - [Terms](https://www.bjorkgroup.com/terms) - [Privacy Policy](https://www.bjorkgroup.com/privacy-policy)