Vestwell today announced its partnership with Amazon’s Delivery Service Partner (DSP) program, to offer retirement solutions to delivery associates.
The partnership provides pooled employer plans (PEPs) to an industry that has generally lacked access to such savings opportunities. Amazon launched its DSP program in 2018, partnering with small to medium-sized transportation business (SMBs) that employ delivery drivers. These businesses are responsible for delivering over 20 million Amazon packages each day across 19 countries. In the U.S. alone, DSPs employ nearly 400,000 contract drivers.
Despite their work, Delivery Service Partners often face challenges like cost and complexity in offering retirement plan features to employees, Vestwell states.
“Our goal is to make workplace savings easier and more inclusive for every type of business – whether you’re at a desk, on the move, or delivering across town,” said Aaron Schumm, founder and CEO of Vestwell, in a statement. “Every worker deserves a financial safety net. This solution is about helping the people who power our everyday lives access retirement plans built for their reality – mobile, multilingual, and easy to use. It’s savings that meet them where they are – just like they do for their customers.”
Vestwell will serve as the pooled plan provider (PPP) for the PEP offering option, managing fiduciary and administrative responsibilities along with plan onboarding and operation. The New York-based firm notes how PEPs are a viable solution for the delivery service industry, one that prioritizes affordability and simplification when managing a 401(k) plan.
The announcement comes as more Americans turn to contract work instead of traditional 9-to-5 workstyles, and as legislation demands support for gig workers. In April, Sen. Bill Cassidy (R-LA) introduced a whitepaper with a selection of proposals backing workplace benefits for independent workers, including provisions that would establish safe harbors for companies and increase health care coverage for contractors.
Vestwell works with nearly 1.5 million savers across over 350,000 businesses nationwide, with over $35 billion in assets saved across all 50 states.
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Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with nearly a decade of experience and a passion for telling stories and reporting news. She is originally from Queens, New York, but now resides in Denver, Colorado.