Pooled 401(k)s Receive Low Employer Buy-In as Confusion Persists

Uncertainty about the cost and structure of recently authorized pooled-employer retirement plans is driving down participation in an option previously touted as a game changer for the 401(k) industry.

Fewer than 300 firms have registered with the US Labor Department to sponsor the plans since they were green lit by Congress in 2019, according to agency data.

The DOL’s Employee Benefits Security Administration had predicted as many as 3,200 early registrants in a 2021 rule outlining provider sign-ups for the plans, which allow groups of disparate employers to offer their workers 401(k) coverage under a single plan.

Pooled 401(k) ...