Pershing Unveils Retirement Plan Network

Pershing rolled out the Retirement Plan Network, which aims to help broker/dealers, investment advisers and registered investment advisers (RIAs) expand their retirement business.

Pershing, a BNY Mellon company, is launching a solution through the first quarter of 2015 that allows advisers to connect to independent recordkeepers, hold assets in custody, and leverage an integrated suite of investment products, retirement plan tools, and practice management solutions. The Retirement Plan Network ultimately helps broker/dealers, investment advisers and registered investment advisers (RIAs) grow their retirement business.

“As one of the largest custodians of individual retirement account (IRA) assets, the retirement market is important to Pershing and our clients,” says Rob Cirrotti, head of retirement solutions at Pershing. “The defined contribution system, however, continues to be the primary retirement savings vehicle for Americans and advisers are playing an increasingly important role in driving better retirement outcomes.”

Defined contribution (DC) assets are expected to increase 5% to 6% per year through 2019, facilitating growth in the retirement plan market. Americans held $6.6 trillion in DC retirement plans, including 401(k) assets, as of the third quarter of 2014. Additionally, IRA assets are expected to exceed $11.5 trillion by the end of the decade, driven by DC plan rollovers. However, many Americans are not sufficiently prepared for retirement, according to data from the Federal Reserve.

“The growth of DC plans and IRAs makes the retirement market an attractive space for advisers and presents them with an opportunity to help meet plan sponsors’ need for better guidance in preparing their plan participants for retirement,” Cirrotti said.

Pershing’s Retirement Plan Network is also designed to help advisers address the need for greater transparency and oversight of their retirement business. The product includes NetX360, which enables advisers to access and leverage integration of independent recordkeepers. It gives advisers a single point of access for both individual and institutional plan business that lets them offer support, view plan investments, conduct investment reviews, facilitate IRA rollovers, select recordkeepers, and access plan sponsor and participant education materials. Advisers can manage investment models or access third-party asset managers with investment choices including mutual funds, stable value funds and exchange-traded funds through managed models.

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