On May 4, 2026, the staff of the U.S. Securities and Exchange Commission (SEC) issued guidance that removes barriers that have prevented pooled employer plans (PEPs)¹ from investing in collective investment trusts (CITs).

SEC Rule 180, a 45-year-old securities registration exemption, permits retirement plans with self-employed participants (e.g., partners working for their own firms, small business owners, sole proprietors, and gig workers) to invest in CITs only if certain conditions are satisfied. One such condition is that the plan covers employees of a “single employer.” On its face, this condition would be a barrier for PEPs, which by definition cover employees of multiple employers. The new SEC staff guidance, however, removes this barrier by clarifying that PEPs may be treated as a “single employer” under Rule 180 and would therefore satisfy this condition.

The staff’s position is clearly consistent with Congressional intent. Congress created PEPs in the SECURE Act to enable small businesses to access the same economies of scale and other cost savings available to plans sponsored by large businesses. Since CITs are a critical driver of those savings, allowing all PEPs to access them was an important step. We will share more information as the industry puts this new guidance into practice.

In plain terms, a major structural barrier keeping PEPs from delivering their intended benefits has been removed. PEPs now have a clear path to invest in CITs, which generally are more cost efficient than mutual funds.

For plan advisors, this is a significant development for your practice. It presents an opportunity for you to expand your business and apply your expertise in new directions.

As the complete retirement practice operating system, RPAG can help you capitalize on this emerging opportunity by identifying, pursuing, onboarding, and managing PEPs and other plans. To see how, contact our Sales team today.

¹A PEP is a type of defined contribution retirement plan that Congress created in the SECURE Act to allow multiple unrelated employers to participate in a single plan, thereby benefiting from economies of scale and reducing the burdens and costs of sponsoring their own separate retirement plans.

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