Securian Financial unveiled a new product to help small- and mid-size businesses set up 401ks for their employees.
What once seemed cumbersome and not worthwhile for smaller employers to offer, retirement benefits are invaluable in today’s job market. The number of available positions is increasing while the number of unemployed workers is decreasing, making it progressively more difficult to attract and retain quality employees.
MEPconnect by Securian is a multiple employer plan allowing smaller, unrelated businesses to band together under one retirement program. Perks include enjoying lower costs and handing off most administrative and fiduciary duties to retirement professionals—“minimizing the adopting employer’s involvement while maximizing fiduciary protection,” according to a statement from the company.
“As much as they’d like to offer it as a benefit to their employees, many small business owners know that sponsoring a retirement plan can take specialized knowledge and add time-consuming administrative and fiduciary obligations to their already busy workload,” said Rick Ayers, Securian Financial’s vice president of retirement solutions.
“MEPconnect incorporates the key features of an effective plan while transferring the bulk of the work and risk to third-party retirement professionals—making it easy for employers to stay focused on running their businesses.”
With MEPconnect, Securian takes care of the recordkeeping and provides a “robust investment platform,” in addition to web-accessible tools and resources. The company teamed up with The Platinum 401k, Inc. and Fidelis Fiduciary Management to round out its offering:
- The Platinum 401(k) assumes the role of the ERISA 3(16) Plan Administrator and principal fiduciary for administrative functions of the plan.
- Fidelis Fiduciary Management serves as the ERISA 3(38) Investment Manager, taking full fiduciary responsibility and discretion regarding the selection and monitoring of investments offered under the plan.
“We’re thrilled to be teaming up with Securian Financial. They’ve created an open multiple employer plan solution that is truly unique in the retirement plan industry,” remarked Terrance Power, The Platinum 401k’s CEO.
“We’re excited about the impact that MEPconnect will have on the small- to mid-sized retirement plan marketplace.”