PAi Enhances Small Market 401(k) Plan Solution

Enhancements include a new investment option from Principal Global Investors geared to minimize market risk by leveraging fixed income investment options that provide a guaranteed crediting rate.

PAi, a 401(k) plan administrator and recordkeeper, has teamed with Principal Global Investors to launch an enhancement to its CoPilot service.

The new CoPilot 401(k) offering incorporates the investment fiduciary services of PAi Trust Company Inc., investment management from Wilshire Associates, and investment strategies from Principal. PAi Trust hired Wilshire to select and approve the investment options offered in this new CoPilot 401(k) service, which has both fee-based and commission-based lineups.

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A new investment option—the Principal Guaranteed Option—is geared to minimize market risk by leveraging fixed income investment options that provide a guaranteed crediting rate. “The need for participants to have comfort in their capital preservation option is a significant concern and the selection of our Principal Guaranteed Option helps participants navigate volatile markets with a stronger level of predictability and stability addressed,” says Rob Logan, managing director of investment only for Principal Global Investors.

“With the recent market volatility, it’s more important than ever for workers to know their 401(k) plan service provider can accommodate specific needs and preferences,” says Michael P. Kiley, founder and CEO of PAi. “By adding Principal to our lineup, PAi can provide savers and financial advisers with additional retirement solutions.”

Pai’s CoPilot service provides planning tools, systematic alerts and reminders to help keep participants on track to meet their retirement savings goals. Its Years of Retirement calculation allows savers to see how many years they can afford to be retired, while built-in messaging provides participation nudges along the way.

CoPilot provides online setup and enrollment, plus it can integrate with many payroll providers, human resources information systems (HRIS) and human capital management (HCM) systems. With integration, data is securely shared between systems, saving plan sponsors time and increasing data accuracy.

ShareBuilder 401k Offers Free Setup for New Plans

Through July 3, companies can save $495 to $995 in setup costs by starting a 401(k) plan.

ShareBuilder 401k, a provider of low-cost digital retirement plans, is aiming to help more businesses and their employees save for the future in a 401(k) by offering free setup on all new plans.

From now until July 3, companies with employees can save $495 to $995 in setup costs by starting a 401(k) plan. Self-employed—or one-person—businesses are also eligible and can save as much as $150 by starting a solo 401(k) plan during the same period.

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ShareBuilder 401k specializes in low-cost, all-exchange-traded fund (ETF) retirement products and resources for small- to mid-sized companies. It provides fiduciary investment management—Employee Retirement Income Security Act (ERISA) Section 3(38)—services for every client’s fund roster.

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