Green is more than just the color of money. It’s also the preferred color of eco-conscious political initiatives and a brand-spanking-new 401k retirement program with a focus on socially responsible investing.
While the Democrats’ “New Green Deal” faces a long and uncertain road to ever becoming real policy, the “Big Green Retirement Program” exists now after the March 4 announcement that Pentegra is partnering with Social(k) and LeafHouse Financial to bring it to the market.
The Big Green Retirement Plan is an aggregate 401k retirement program that offers comprehensive, bundled 401k plan services with full fiduciary outsourcing capabilities for companies who align themselves with the importance of socially responsible investing.
In a statement released Monday, White Plains, N.Y.-based retirement planning and fiduciary outsourcing solutions provider Pentegra says the unique plan allows an individual to consider his or her own closely held beliefs as part of making retirement investment choices, and offers plan sponsors a path toward simpler, safer, easier plan administration by outsourcing both the fiduciary administrator and investment roles.
“Until now green companies have had limited options for retirement plans that solely offer socially responsible investing alongside fully bundled 401k plan services and outsourced fiduciary responsibility,” said Pentegra Senior Vice President and National Practice Leader Pete Swisher. “The Big Green Retirement Plan offers a tremendous market opportunity.”
Pentegra will provide recordkeeping and 3(16) fiduciary administrator services for the program, enabling plan sponsors to minimize retirement plan fiduciary responsibility and liability and greatly reduce their internal administrative workload.
LeafHouse Financial, a national investment fiduciary based in Austin, Texas, will provide 3(38) discretionary investment fiduciary services for the plan. LeafHouse will evaluate, select, monitor and manage the Plan’s SRI/ESG investment platform.
“Environmental, social, and governance (ESG) factors are increasingly viewed as important elements in determining the financial performance of companies,” said LeafHouse President Todd Kading. “Our firm sees the trajectory of ESG investing rising, and believes the time is right to offer investment oversight to retirement plans. In our opinion, there is no better way to do this than to partner with two industry leaders, Pentegra and Social(k).”
Social(k) Founder and Owner Rob Thomas said: “Today, more and more, employers and employees are interested in retirement plan investments that make a positive impact not only on their lives but also the lives of others. Interest in ESG/SRI investment options continues to grow, but 401k plans have had fiduciary concerns that have slowed the growth of these investment options for ERISA plans. The Big Green Retirement Plan offers a terrific solution.”
Swisher added: “With a focus on oversight and fiduciary responsibility, all three organizations’ values are closely aligned, so it made great sense for us to come together to offer the program. It’s a win-win for clients as well as for our organizations as partners.”
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.
