Ascensus announced today that it will partner with Capital Group to offer a new Pooled Employer Plan (PEP) with some unique benefits.
Dresher, Pa.-based Ascensus said it will begin offering the Ascensus | American Funds Pooled Employer Plan solution on its independent, open-architecture recordkeeping platform beginning in spring 2024.
“We’re delighted to partner with Capital Group, home of American Funds, to offer the significant benefits and flexibility our PEP program provides,” said Jason Crane, head of Distribution for Ascensus Retirement, who added that Ascensus will be the first provider to offer American Funds Target Date Plus.
The new investment solution is focused on creating a unique portfolio that matches a participant’s financial needs more closely than a traditional target date fund allocation determined only by age.
“Capital Group shares our goal to help more savers save more, and our commitment to offering a full product continuum to meet customer needs. American Funds’ investment experience and Ascensus’ award-winning service are a powerful combination—and all focused on driving better outcomes for partners, clients, and savers.”
Mike Bockstie, Senior Vice President, Institutional Retirement Sales, Capital Group, said that after watching the PEP market evolve over the last several years and listening closely to advisors who desired a pooled plan offering, Capital Group is pleased to announce this partnership with Ascensus. “The Ascensus-American Funds PEP Solution is the first in the industry to include Target Date Plus as a QDIA option for participants, which provides personalized allocation advice tailored to a retirement saver’s specific needs and objectives,” Bockstie said.
The Ascensus | American Funds PEP offers the traditional administrative and investment fiduciary benefits of a pooled employer plan—with Wilshire taking on the role as 3(38) investment fiduciary—plus several key differentiators, including:
- American Funds Target Date Plus, powered by Morningstar Investment Management LLC, with personalized allocation advice tailored to a retirement saver’s specific needs and objectives.
- A tiered investment menu grouping investment funds into logical categories (from target-date funds to customized portfolios) to build understanding and simplify participants’ decision making—inclusive of a number of leading fund managers.
- A fully bundled solution supported by Ascensus’ world class-rated client service team.
- Greater capabilities targeting better outcomes for participants through tools like My Forecast, where savers will be able to see a complete retirement readiness view.
- Plan design flexibility that works for each adopting employer.
- Financial Finesse financial wellness coaching benefits.
Ascensus has reached $1 billion in PEP assets under administration, representing more than 33,000 savers. The company has more than $742 billion in assets under administration overall.
As of June 30, 2023, Capital Group manages more than $2.3 trillion in equity and fixed-income assets for millions of individuals and institutional investors around the world.
SEE ALSO:
• HUB Launches Pooled Employer Plan
• Freedom Fiduciaries Launches Pooled Employer Plan
Veteran financial services industry journalist Brian Anderson joined 401(k) Specialist as Managing Editor in January 2019. He has led editorial content for a variety of well-known properties including Insurance Forums, Life Insurance Selling, National Underwriter Life & Health, and Senior Market Advisor. He has always maintained a focus on providing readers with timely, useful information intended to help them build their business.
