The platform should help advisers bring better fee transparency and awareness to plan sponsor clients, ADP says. Investment options offered under the IPS Zero platform pay no 12b-1 fees, shareholder servicing fees or revenue sharing compensation to ADP, Inc., or its affiliates. This grants sponsors and participants the benefit of paying significantly lower investment fees, ADP says, while also simplifying their plans’ overall fee structure.
In addition, the platform takes a provider-agnostic approach and does not require the use of any specific proprietary investment vehicles, which can help reduce conflicts of interest and other impediments to minimizing plan fees and expenses.
In addition to simplified fees, the IPS Zero platform offers investment screening and ongoing monitoring of the platform’s investment options by ADP’s team of investment professionals. Advisers using the platform gain a broad selection of investment options from over 30 respected asset managers, as well as access to fiduciary liability support tools.
“Our goal is to make retirement plan administration and participation easy and accessible, and simplified fees and transparency play an important role in that process,” explains Chris Augelli, vice president of product marketing and business development at ADP Retirement Services.
More information for advisers and sponsors interested in IPS Zero is available at www.adp.com/401k.