Vestwell is expanding its pooled and multiple employer plan (MEP) solutions, in an effort to offer affordable 401(k) plan options to small and medium-sized business (SMB) clients.
The firm provides a fully digital plan setup and onboarding process for advisors and third-party administrators (TPAs) to manage and scale multiple plans simultaneously. The plan options are available to both existing and new 401(k) plans. Vestwell’s MEP offering is designed to support professional employer organizations (PEOs), associations, franchises, and small business affiliates.
“We’re proud to expand our pooled and multiple employer plan solutions and offer advisors additional tools for serving the small plan market, delivering on the high level of inbound industry demand,” said Richard Tatum, president of Workplace Savings at Vestwell. “Our modern approach to plan capabilities, powered on our advanced technology platform, allows for the flexibility and experience in meeting their clients’ complex business needs.”
As a result of SECURE Act 2.0 legislation, multiple and pooled employer retirement plans, such as MEPs, GoPs, and PEPs, offer small businesses plans significant opportunities to expand retirement plan access to greater numbers of employers and employees, said Vestwell.
“As nearly half of the American workforce does not have a retirement savings plan through their employer, there is a great opportunity ahead for advisors to support the implementation of workplace savings programs, especially for small businesses typically excluded from offering these benefits,” concluded Tatum.
While the original SECURE Act of 2019 allows 401(k) plans to join MEPs and PEPs, the latest SECURE legislation now extends this to the 403(b) marketplace.
Vestwell is the latest in the industry to expand upon its PEP and MEP solutions. Just last week, Ameritas announced it was launching its new PEP, available on its flexible retirement plan platform.
Leading this expansion is Eli Landow, divisional vice president of East and Institutional Sales, along with Kevin Gaston, director of Plan Design and Institutional Consulting.
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Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with over six years of experience and a passion for telling stories and reporting news. Amanda received her degree in journalism and government and politics at St. John’s University. She is originally from Queens, New York, but now resides in Denver, Colorado with her partner. In her free time, Amanda enjoys running, cooking, and watching the latest drama show.
