The move was in response to demand from plan sponsor clients, as well as the regulatory pressure that is encouraging advisers to move toward a more fee-based model, said Frank Tortora, 401(k) sales program manager at Paychex, which specializes in the micro-plan market. Advisers working with Paychex can now also choose to be fiduciaries on plans.
He told PLANADVISER that plan sponsors using the Paychex platform can choose whether to work with an adviser, and about 70% of them do. The new model expands “the universe of financial advisers they can work with.”
Paychex said it provides fee-based advisers with direct payments that consolidate their compensation from all of their clients that use the Paychex service. Advisers have access to an adviser Web site with plan and participant data, Paychex marketing and enrollment materials, and telephone support.
Plan sponsor clients receive reporting of all fees to the adviser, and can choose to use their advisers for additional services such as fiduciary liability, asset modeling, and detailed fund research, according to the firm.
More information is available at www.paychex.com/partners/investment.aspx.