Paychex, Inc. has expanded its
portfolio of partners and solutions that provide investment and
administrative fiduciary protection to 401(k) plan sponsors.
new offerings include Employee Retirement Income Security Act (ERISA)
3(21) investment guidance services through Wilshire Associates and ERISA
3(38) investment management services through Mesirow Financial. These
new fiduciary services join Paychex’s current 3(38) offerings from
GuidedChoice and LPL Financial.
“With these services, we’re
making it easier for advisers and plan sponsors to offer investment
options in their 401(k) plans that allow them to keep up with the
demands of the ever-changing regulatory environment,” says Tom Hammond,
vice president of corporate strategy and product management at Paychex.
“Our clients will be able to choose from a suite of fiduciary solutions
to help them with the complicated investment selection process by
outsourcing to professional firms.”
The Wilshire 3(21) adviser
services provide a select list of investments that have been screened
using Wilshire’s tested methodology, as well as plan-specific quarterly
reports to help track and monitor investments. An option to auto-execute
recommended fund changes is also available.
Mesirow Index Elite
is an ERISA 3(38) investment fund lineup that includes index and
target-date funds. The funds in this product are selected and monitored
by Mesirow Financial’s industry experts.
“Each fiduciary firm has
its own standards for selecting investments, but in general these
processes are designed to ensure that the investments made available to
participants are continuously monitored,” says Hammond. “This monitoring
will improve participants’ experience, while assisting the employer in
fulfilling its fiduciary obligations to the plan.”
conjunction with MidAtlantic Trust Co., Paychex is also now providing a
solution to levelize the commissions paid to financial advisers from
fund companies. The program leverages Paychex’s Return of Concessions
feature where all commission and revenue share are returned to
participants, and all fees are levelized across all participants in the
To learn more about fiduciary investment solutions available through Paychex, visit www.paychex.com/retirement/plan-management.aspx.