CAPTRUST Financial Advisors announced the launch of Direct Fiduciary, a comprehensive retirement plan solution for small companies, in collaboration with T. Rowe Price and National Benefit Services (NBS).
Unlike PEPs and MEPs, which may limit the plan sponsor’s ability to work with certain payroll providers or utilize certain plan design features, Direct Fiduciary is an individual employer-sponsored retirement plan, allowing organizations to customize it to meet the needs of their employees, the announcement explains.
The program will allow companies to significantly reduce the amount of time spent managing their 401(k) plans by outsourcing administrative and investment fiduciary responsibilities. CAPTRUST will provide 3(38) investment management services, as well as participant investment advice, while NBS will act as the third-party administrator, 3(16) plan administrator and primary contact for employers. T. Rowe Price will be the recordkeeper and the day-to-day contact for plan participants.
CAPTRUST also will assist plan sponsors with navigating certain fiduciary responsibilities that are not fully outsourced, including ongoing monitoring and due diligence of the plan’s service providers and determining fee reasonableness. CAPTRUST will also provide virtual investment advice to plan participants through managed accounts and give plan sponsors the option to add one-on-one participant advice and financial wellness services.
“We have created a premium service at a price point that is the same or less than most plan sponsors currently pay and are excited to offer smaller organizations an opportunity to leverage our collective scale and expertise while maintaining control of their plan,” notes Jennifer Doss, Senior Director and Defined Contribution Practice Leader at CAPTRUST. “The types of plans that we expect to most benefit from this type of program are those with around $10 million in assets, though the offering could certainly work with both larger and smaller plans.”
“For small business owners, this offering creates immense value by allowing them to take advantage of a package of services that are difficult for smaller plans to obtain in one offering,” adds Kevin Collins, head of retirement plan services, T. Rowe Price. “Together with CAPTRUST and NBS, we are positioned to offer a cost-effective and efficient solution that will allow these businesses to offer their plan participants the opportunity to save for a successful retirement.”
For more information, visit https://www.captrust.com/captrust-direct-fiduciary/.
