Ascensus to Offer LPL Financial 3(38) Solution

The solution is aimed at simplifying retirement plan delivery for small employers. 

Ascensus will offer LPL Financial’s new 3(38) Small Market Solution, aimed at delivering successful and cost-effective retirement plans to small employers.

According to the firms, the Small Market Solution will incorporate LPL’s 3(38) investment management service and its Worksite Financial Solutions into Ascensus’ plan management tools to create “an innovative solution tailored to small-business owners’ needs.” The solution includes full-service or recordkeeping-only services for 401(k), Money Purchase, and Profit Sharing retirement plans with less than $20 million in assets.

The 3(38) Small Market Solution further “aims to minimize investment fiduciary risk while maximizing efficiency for small employers.” Through the 3(38) investment fiduciary service, LPL Financial acts with discretionary authority over the plan’s investment selection and ongoing monitoring and offers employers assistance with a number of administrative functions.

The Small Market Solution also features enrollment in Worksite Financial Solutions, which brings employee engagement tools, investment advice, financial wellness education and retirement-transition assistance for participants.

To facilitate clients’ transition, Ascensus also will utilize ExpressEnroll in the new solution: “Via ExpressEnroll, plan participants are re-enrolled into the qualified default investment alternative (QDIA) of the client’s choice.”

The QDIA solution offers participants investment guidance tailored to personal variables, including risk tolerance, age, and desired retirement year. Data from the Ascensus platform suggests that an increasing percentage of clients are embracing QDIA re-enrollment, with nearly 80% of new clients opting for QDIA re-enrollment in 2015. “Furthermore, 95% of plan participants remained in the QDIA for clients who adopted this process,” the firms explain.

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