Pentegra, ADP Team on Fiduciary 3(16)

3(16), 401k, partnership, ADP

It just makes sense.

3(16) administrative services can easily cause confusion, headache and legal exposure for clients.

To help, retirement plan and fiduciary firm Pentegra announced Monday that it’s partnered with ADP Retirement Services to offer 3(16) fiduciary solutions to complement ADP’s retirement recordkeeping services.

“The new solution helps businesses of all sizes reduce administrative responsibilities, simplify retirement plan complexities and minimize risk,” according to the companies.  “Among the first of its kind in the industry, the solution will provide ADP 401k clients with the ability to outsource key retirement plan administrative duties.”

“Employers are fiduciaries, legally responsible for running their plan,” Pentegra President and CEO John Pinto said. “Most plan mistakes involve administration—and these mistakes have very real, legal consequences. By combining our fiduciary solution with ADP’s recordkeeping platform, we can make offering a retirement plan less burdensome for the business owner by transferring the responsibility to Pentegra.  We feel strongly that no matter the plan size, whether $1 million or $50 million, we can help them reduce risk and provide better outcomes.”

Interactive tool

In addition to offering 3(16) services, Pentegra will provide an interactive tool, Retirement GuidePath, for advisors to engage with plan sponsors, coming later this fall.

Designed by Blue Rush, a provider of interactive and personalized video solutions, Retirement GuidePath delivers a customized, personal video experience for every client, using a unique video-based platform that simplifies complex terminology and ensures immediate relevancy to drive better engagement across the customer journey.

“What is happening now in terms of demand for 3(16) services will likely reshape the marketplace,” Pinto noted. “As an institutional fiduciary for more than 75 years, Pentegra is well-positioned to deliver these services at the platform level. We are excited about this opportunity to partner with ADP and the benefits that these innovative services will provide business owners as they embrace the concept of outsourcing fiduciary responsibilities.”

“Our retirement business has been built upon solving complex human resource challenges for employers from recruitment to retirement,” Kristin Andreski, general manager of ADP Retirement Services, added. “We leverage innovation to help drive plan efficiency and improved outcomes for participants, while providing plan sponsors with access to solutions that reduce administrative risk and save them valuable time. We believe that our relationship with Pentegra truly helps accomplish those objectives.”

Exit mobile version