The Shakopee Chamber PREP Plan — a Pooled Employer Plan available exclusively to Chamber members through Edward Jones, with recordkeeping by John Hancock. Big-company retirement benefits at small-business pricing, with less paperwork and lower fiduciary risk.
A Pooled Employer Plan (PEP) is a 401(k) where multiple unrelated employers participate in a single retirement plan — sharing administration, fiduciary services, and economies of scale. The Shakopee Chamber has partnered with Edward Jones and John Hancock to launch a Chamber-branded PEP exclusively for our members.
Whether you’ve never offered a 401(k) before or you already sponsor one and want to lower your costs and offload administrative work, the Chamber PREP Plan was designed to make a workplace retirement benefit attainable for small and mid-size Shakopee employers.
Why Shakopee Employers Choose the PREP Plan
Lower Upfront Costs
$0 setup fee compared with $500 typical setup for a stand-alone 401(k).
No Setup Fees
Get started without writing a check just to launch the plan.
Shared Fiduciary Responsibility
3(16) plan administrator and 3(21) investment manager built into the plan structure.
Reduced Administrative Burden
Your job is essentially three things: upload payroll, monitor providers, provide year-end data.
Exclusive Chamber Pricing
Negotiated rates available only to Shakopee Chamber members.
Costs Decrease as Assets Grow
Pricing improves at $250K, $500K, and $1M+ in plan assets.
401(k) Cost Comparison — Chamber PREP vs. Traditional
Lower starting costs. Better long-term value. The figures below illustrate typical starting fees for a new plan; final fees depend on plan demographics and the proposal in effect at the time you enroll.
Cost comparison between the Chamber PREP Plan and a traditional 401(k) plan.
Cost Category
Chamber PREP Plan
Traditional Plan
Annual Base Cost
$1,500
$2,220
Setup Cost
$0
$500
Participant Fee (per employee)
$50
$78
Asset Fee
~1.4%
1.45%
ERISA Fidelity Bond
$175 one-time
Included
Source: Edward Jones / John Hancock illustration, May 2026. Costs improve as plan assets grow — pricing efficiencies kick in at $250K+, additional efficiency at $500K+, and institutional-level pricing at $1M+. Actual fees vary based on plan size, participant count, and service elections.
Sample Annual Savings
A snapshot of typical first-year costs for a small employer offering a 401(k). Based on the cost figures from the table above (excludes asset-based fees). Your actual costs and savings depend on plan size, design, and participant count. Request a personalized proposal for figures specific to your business.
Eligible Employees
Chamber PREP Plan, Year 1
Traditional Plan, Year 1
Estimated Year-1 Savings
5 employees
$1,925
$3,110
$1,185
10 employees
$2,175
$3,500
$1,325
25 employees
$2,925
$4,670
$1,745
50 employees
$4,175
$6,620
$2,445
Illustration only. Excludes asset-based fees, optional services, and plan-design-specific costs. Request a personalized proposal from our Edward Jones team for figures specific to your business.
SECURE 2.0 Tax Credits
Starting a new 401(k) may qualify your business for substantial federal tax credits under the SECURE 2.0 Act. Small employers joining a Pooled Employer Plan are eligible for the full start-up credit regardless of how long the PEP has been in existence.1
Credit
Employers up to 50 employees
Employers 51 to 100 employees
Start-up cost credit
100% of qualified costs (up to $5,000/yr for 3 years)
50% of qualified costs (up to $5,000/yr for 3 years)
Employer contribution credit
Up to $1,000 per employee (phased over 5 years)
Phased out as headcount approaches 100
Eligibility for PEP participants
Full start-up credit available regardless of how long the PEP has been in existence (SECURE 2.0 Section 111).
1 SECURE 2.0 Act of 2022, Sections 102 and 111. Section 102 sets the start-up credit at 100% of qualified start-up costs (capped at $5,000/yr for 3 years) for employers with up to 50 employees, and 50% for employers with 51 to 100 employees. Section 111 confirms that a small employer joining an MEP or PEP is eligible for the full start-up credit. Estimate only. Consult your tax professional and review IRS Form 8881 for figures specific to your business.
As Easy as 1, 2, 3
Inside the PREP Plan, your responsibilities as an employer are dramatically simplified. The plan’s pooled service providers handle the rest.
1
Upload Payroll Files
Submit your payroll data to the plan each pay period — that’s it.
2
Monitor Service Providers
Standard fiduciary oversight — reviewing the work of TAG Resources, John Hancock, and Wilshire on a periodic basis.
3
Provide Year-End Data
Supply census data for compliance testing and Form 5500 — TAG handles the filings.
The Team Behind the Plan
The Shakopee Chamber PREP Plan is built on a partnership of nationally established retirement services firms — each providing a specific service so no single party carries the full fiduciary load.
Edward Jones
Local financial professionals — Paul Youngs, Stephen Huber, and Chris Sue — serve as the Chamber’s plan advisors and your direct point of contact.
Manulife John Hancock Retirement
Recordkeeper. Daily valuation, participant services, personalized retirement readiness tools, and digital participant engagement.
TAG Resources
3(16) plan administrator and 402(a) named fiduciary. Handles compliance testing, Form 5500 preparation, and employer services.
Wilshire
3(21) investment manager. Investment selection and monitoring with quarterly reporting and review of plan investments.
Manulife John Hancock Retirement, TAG Resources, Coulter & Justus PC (audit, if required), and Wilshire are unaffiliated entities, and none is responsible for the liabilities of the others.
Frequently Asked Questions
What is a Pooled Employer Plan (PEP)?
A PEP is a single 401(k) retirement plan that allows multiple unrelated employers to participate together. PEPs were authorized under the SECURE Act of 2019 and expanded under SECURE 2.0. Each participating employer contributes for their own employees, but administration, fiduciary services, and investment lineups are pooled — reducing cost and complexity for each individual business.
Do I have to be a Shakopee Chamber member to join?
Yes. The Chamber PREP Plan is a member benefit. If you’re not yet a Chamber member, joining the Chamber is required before enrolling in the plan. Learn more about Chamber membership.
Can I switch from my existing 401(k) to the Chamber PREP Plan?
Yes — many businesses join the PREP Plan to consolidate from a stand-alone plan and reduce administrative burden. Our Edward Jones team will walk through your current plan’s structure, costs, and transition timeline before recommending next steps. Plans with $50,000+ in transfer assets may qualify for additional pricing benefits.
What are my fiduciary responsibilities under the PEP?
Significantly less than with a stand-alone plan. TAG Resources serves as the 3(16) plan administrator and 402(a) named fiduciary, and Wilshire serves as the 3(21) investment manager. Your remaining fiduciary duty is generally limited to monitoring the providers and providing accurate data. Joining a PEP does not eliminate all fiduciary responsibility — your business retains certain obligations, which the Edward Jones team will review with you in detail.
Does my business qualify for SECURE 2.0 tax credits?
If you have 100 or fewer employees and are establishing a new plan (or have not maintained one in the prior three years), you may be eligible for substantial start-up tax credits. Joining a PEP does not disqualify you from the credit — under SECURE 2.0 Section 111, small employers joining a Pooled Employer Plan remain eligible for the full start-up credit regardless of how long the PEP has been in existence. Consult your tax professional for advice specific to your business.
Can I customize plan features like matching, vesting, or eligibility?
Yes — within the framework of the pooled plan, each participating employer can choose their own contribution formula, vesting schedule, eligibility rules, and Safe Harbor status. Our Edward Jones team will help you design the plan that best fits your business and your employees.
What does it cost to participate?
Starting fees are illustrated in the Cost Comparison Table above. Your actual fees depend on your number of participants, plan design, and asset level. Pricing improves at $250K+, $500K+, and $1M+ in plan assets. Request a personalized proposal from our Edward Jones team for figures specific to your business.
How do I get started?
Complete the form below or contact our Edward Jones team directly. They will set up an introductory conversation, review your goals, and prepare a proposal tailored to your business.
Request More Information
Fill out the form below and our Edward Jones plan team, including Kellie Bokusky, will be in touch with a personalized proposal for your business. There is no cost or obligation to learn more.
Shakopee Chamber PREP Plan Request For Information
By submitting this form you agree to be contacted by the Shakopee Chamber and our Edward Jones plan team regarding the Chamber PREP Plan. We will not share your information with unrelated third parties. Submitting this form is not an application for or enrollment in any retirement plan.
