John Hancock Retirement said it will waive recordkeeping fees for the first quarter of 2021 for eligible plans that sign up for a 401k plan between Aug. 1, 2020 and Dec. 31, 2020.
The fee waiver is available to plan sponsors looking for an alternative solution for their plan’s recordkeeping services, and “is designed specifically to help small businesses in today’s challenging economic environment,” according to the company.
“Activity has really picked up in the last two months across all asset segments,” said Gary Tankersley, Head of Sales & Distribution, John Hancock Retirement. “However, employers understandably have a lot on their plate right now, and upgrading their company’s retirement plan may not be a top 10 priority for 2020. This waiver aims to provide a small motivation to tackle this project now versus waiting until later.”
The waiving of recordkeeping fees is one of several ways John Hancock Retirement has worked to help financial professionals, sponsors, and participants as a result of the impact of COVID-19.
In recognition of the relief provided by the CARES Act, John Hancock waived amendment fees for plan sponsors amending plans to adopt the features outlined within the legislation, as well as waived fees associated with participant COVID-19 withdrawals.
In addition to fee waivers, John Hancock Retirement said it “continues to support the broader retirement community in today’s uncertain environment with a robust market volatility engagement program, in-depth thought leadership on participant behavior and the current legislative environment and optimized virtual collaboration. “
Conditions
Waivers are available for 401k retirement plan programs that meet certain criteria. A commitment to John Hancock must be signed prior to 12/31/2020 and plan assets must convert prior to 3/31/2021 to realize any waiver. If plan assets are converted after 1/1/2021 the waiver will be applied for the time period assets are with John Hancock within the first quarter. This offer applies only to 401k retirement plan programs, and will not be applied to start-up, multi-plan, defined benefit, or Taft Harley programs. For more information about the program and complete criteria details please refer to the Fee Waiver Program Proposal Insert or contact your JH representative.
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots.
