Fixed fund lineup — All adopting employers share one common fund lineup. Generally, the Plan Sponsor or Investment Fiduciary makes additions to or removals from the lineup; notification must be provided to all eligible individual participants.
Audit possibility — Although PEPs have a more lenient policy on audit requirements than MEPs, a PEP could still combine enough small plans and eligible participants to become auditable in a short span of time, which would impact costs adversely.
PPP fiduciary liability — Each adopting employer within a PEP retains fiduciary liability for the selection and monitoring of the PPP.
Accessibility — Any adopting employers, service providers and fiduciaries with a PEP can be removed from the plan by the PPP.