Group Plans
Syndicate vs. PEP: Which Group 401(k) Is Right for You?
Pooled plans promise group economics — but they ask each employer to give up control and take on shared risk. A Syndicate keeps the economics without the tradeoffs. Here's the side-by-side.
The Short Version
- In a PEP/MEP, employers join one pooled plan — the sponsoring organization holds fiduciary liability and a group audit can hit sooner.
- In a Syndicate, each employer keeps its own plan and its own fiduciary, with group pricing layered on top.
- Syndicate plans set up in about a day, stay fully portable, and let each business pick its own plan design and investment lineup.
- Pricing is $110/mo base + $2/participant/mo + 0.15% AUM, with no setup fee.
First, The Definitions
Two ways to do a group plan
Option A
PEP / MEP
A Pooled or Multiple Employer Plan brings many employers into one shared plan under a sponsoring organization. The sponsor takes on fiduciary liability, and the plan is administered — and audited — at the group level.
Option B
Syndicate Group 401(k)
A Syndicate gives each employer its own independent plan and fiduciary, while group purchasing power delivers the pricing and administration benefits. The best of both worlds — economics without the loss of control.
Head to Head
Syndicate vs. PEP, by dimension
| Dimension |
PEP / MEP |
Syndicate™ |
| Fiduciary Liability |
The sponsoring organization assumes fiduciary liability for the pooled plan. |
Each employer has its own plan and its own associated fiduciary. |
| Audit Trigger |
A group audit is triggered once the entire group's participant count reaches the threshold. |
Each plan is audited on its own — and only if that individual plan reaches the threshold. |
| Setup Cost & Time |
Setup can take weeks, depending on provider and plan complexity. |
Setup is completed in about one day, with no setup fee. |
| Plan-Design Flexibility |
Each plan must adopt the specific plan designs and provisions of the pool. |
Each business selects its own plan design and provisions. |
| Portability |
Disconnecting a plan from the group is difficult. |
Each plan is portable; employers can terminate the relationship easily. |
| Investment Lineup |
One investment lineup applies to the whole group. |
Each plan can run its own lineup, or use one connected to the group. |
This comparison is written for operators below the roughly 100-participant threshold at which a standalone plan becomes subject to an independent audit. For employers above that threshold, a PEP's consolidated single audit can reduce costs a standalone or Syndicate structure would not. Syndicate is presented here as the better fit for smaller, growing franchise operations specifically, not as universally superior to a PEP on every dimension. Structural comparisons above are informed in part by 401GO's own published materials on Syndicate and PEP structures, used with permission.
The Takeaway
Group economics, without shared liability.
For employers, the Syndicate structure delivers the best of both worlds: cost savings through group purchasing power, and the independence of owning your own plan — your own fiduciary, your own design, and the freedom to leave whenever you choose.
What It Costs
Syndicate group plan pricing
Base monthly fee$110 / mo
Per participant$2 / mo
AUM fee0.15%
Setup fee$0
Setup time~15 min, same-day access
Rates shown are plan administration and recordkeeping, with 3(16) and 3(38) services included in the 0.15% AUM fee. Every plan also includes our investment advisory services, with a fee based on plan size.
A Syndicate is ideal for associations, chambers of commerce, and franchise groups that want to offer members a modern, affordable plan. Because plan design stays with each individual employer rather than the pool, members are also free to layer on a
Profit Sharing and Cash Balance stack for their own owner and key employees — an option a PEP or MEP typically doesn't allow. If your businesses are
commonly owned rather than independent, the rules are different — see
controlled groups. For the full range of franchise structures, visit
Franchise 401(k) Solutions.
Common Questions
Syndicate vs. PEP FAQ
What is a Syndicate group 401(k)?
A Syndicate is a group plan structure in which each employer keeps its own independent plan but benefits from group pricing and administration. There is no shared fiduciary liability between employers.
How is a Syndicate different from a PEP or MEP?
In a PEP or MEP, the sponsoring organization bears fiduciary liability and a group audit is triggered sooner. A Syndicate gives each employer its own plan, its own fiduciary, and full portability.
Does a Syndicate trigger a group audit like a PEP?
No. In a PEP or MEP, an audit can be triggered when the entire group's participant count reaches the threshold. In a Syndicate, each plan is audited on its own, and only if that individual plan reaches the threshold.
Is a Syndicate plan portable?
Yes. Each plan in a Syndicate is portable, so an employer can terminate the relationship and exit easily. Disconnecting an individual plan from a PEP or MEP is typically much harder.
What does a Syndicate group 401(k) cost?
A Syndicate group plan is $110 per month base plus $2 per participant per month and a 0.15% AUM fee, with no setup fee. The 0.15% AUM fee includes 3(16) and 3(38) services, and every plan also includes our investment advisory services, with a fee based on plan size. Setup takes about 15 minutes with same-day access.
Who is a Syndicate group 401(k) best for?
Associations, chambers of commerce, and franchise groups that want to offer members a modern, affordable 401(k) while letting each employer keep its own independent, portable plan.
Can an employer add profit sharing or cash balance within a Syndicate?
Yes. Because each employer in a Syndicate selects its own plan design rather than adopting a shared pool design, individual members can layer on a
Profit Sharing and Cash Balance stack for their owner and key employees. This is typically not possible inside a PEP or MEP, where plan design is fixed at the group level.
Not Sure Which Fits?
Let's match the structure to your group.
In 30 minutes we can map your entities, ownership, and goals to the right structure — Syndicate, controlled group, or individual plan.
