Voya to offer multiple PEP investment lineups as assets rose 70%

Voya Financial will let a single pooled employer plan offer multiple investment lineups and multiple fiduciaries starting in December, the recordkeeper said Nov. 4.

Voya's PEP business grew assets more than 70% in the year to Sept. 30, with employer adoption up 30% and employee participation up more than 50%, the company said. The broader multiple employer solutions unit, which serves industry associations, public sector groups, professional employer organizations and small- to mid-market businesses, has doubled over the past two years and reached nearly $200 billion in assets earlier this year. 401(k) Specialist first reported the expansion.

An adviser whose model is one of a PEP's lineups keeps the investment-management role for the employers that pick it, Voya said. On Voya's account, adding participating employers to a plan does not by itself reopen the question of who manages the money in each one. The company said the change gives plan sponsors, advisers and participants more flexibility across lineups and fiduciaries.

Allison Dirksen, senior vice president and head of Retirement Distribution at Voya, said employers keep asking for simpler ways to offer benefits that help more workers prepare for retirement. "That's fueling interest in solutions that can broaden access to retirement savings, reduce the administrative burden and provide greater flexibility to meet different plan needs," she said.

Voya also widened its full-service MEP and PEP recordkeeping for middle and emerging markets, adding plan document services and compliance testing. In October the company said it would add AI tooling to retirement plan onboarding workflows, as Retirement Capital Daily previously reported.