ADP Launches PEP with Embedded Payroll, Recordkeeping Integration
ADP today launched the Save4Retirement Pooled Employer Plan (PEP) in an effort to cut costs and complexity for employers. The new PEP is supported by ADP’s embedded payroll and recordkeeping integration, which enables data to move between systems in real time.
The HR, payroll and recordkeeping provider’s advanced technology ensures key payroll data is synched with recordkeeping data to continuously verify transactions like employee deferrals from the latest ADP payroll cycle or adjustments to an employee’s investment elections. This validation promotes confidence in plan compliance and the integrity of participant accounts.
“Our new Pooled Employer Plan brings together scale, integration, and fiduciary support, giving investment advisors a flexible structure to help their clients manage plan costs while offering a well-governed retirement plan.”
Chris Magno, ADP Retirement Services
PEPs allow multiple unrelated employers to join a single, professionally managed 401(k) structure that consolidates administration and shifts key administrative fiduciary responsibilities to a pooled plan provider.
Pentegra is the pooled plan provider for the Save4Retirement PEP and responsible for the primary administrative fiduciary responsibilities which includes authorizing distributions, reviewing and approving annual compliance tests—as well as filing a Form 5500 and plan audit. This moves considerable administrative tasks from employers to the pooled plan provider and shares costs across participating employers, yielding reduced plan expenses.
The Save4Retirement PEP also includes Mesirow as the ERISA 3(38) investment manager responsible for overseeing the investment lineup, shifting certain investment fiduciary responsibilities from the employer. In this capacity, Mesirow conducts ongoing investment monitoring and fund selection, and provides a quarterly reporting package to ensure transparency and proper documentation of fiduciary oversight.
“Employers continue to look for ways to offer robust retirement plan benefits without adding administrative burden or fiduciary exposure,” said Chris Magno, senior vice president and general manager, ADP Retirement Services. “Our new Pooled Employer Plan brings together scale, integration, and fiduciary support, giving investment advisors a flexible structure to help their clients manage plan costs while offering a well-governed retirement plan.”
Independent registered investment advisors (RIAs) continue to guide and consult with employers on plan features, and team up with Retirement Services’ Participant Success Organization to support participant enrollment and ongoing education. The value for RIAs is the ability to consolidate clients into a single platform, reducing administrative complexity, simplifying oversight and elevating their client impact.
SEE ALSO:
• Advisors Gaining Popularity Along with the PEPs They’re Selling
• ‘Vestwell Elite’ Pooled Employer Plan Debuts
• Fiserv and ADP Partner on Small Business Solution
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.