Financial advisors can now offer retirement plan sponsors access to a cost-effective, streamlined plan solution with fiduciary and investment support under a new collaboration announced between Envestnet and Empower.
The solution—Envestnet Retire Complete—combines Envestnet’s fiduciary guidance and investment due diligence with Empower’s personalized communications and investments to help more employers provide competitive 401(k) plans.
“Our 3(38) fiduciary service and investment selection methodology, along with Empower's retirement services market leadership and scale, have created an opportunity for advisors to help businesses deliver value to their employees—while minimizing fiduciary concerns and service challenges associated with running a retirement plan,” said Sean Murray, head of Retirement for Envestnet. “Together, we can enable more organizations to offer a competitive benefits package for attracting and retaining top talent.”
According to the announcement, Envestnet Retire Complete encompasses the following features.
Fiduciary support and investment selection/monitoring: Envestnet assumes the responsibility of ERISA 3(38) fiduciary and investment manager, providing recommendations tailored to fit the plan sponsors’ and participants’ needs. The fiduciary service also features Envestnet’s SCORE methodology designed to evaluate and monitor investment options in qualified retirement plans.
Suite of diverse investment options: Envestnet has created a pre-set core menu of investment options for participants to choose from with an eye towards active and passive choices. In addition, advisors and plan sponsors can choose from four target date providers as the qualified default investment option.
Seamless participant experience: Empower's personalized digital experience can integrate the elements of any individual's financial picture to help them better understand their current situation and future needs. Plan participants can also download the Empower app to access their personalized account dashboard on their mobile devices.
Customized communications: Empower's multichannel messaging capability, which enables plan sponsors to send relevant and timely communications to participants that are tailored with the messages they need to receive.
“Retirement investors who are better informed about their complete financial picture are in a strong position to make better decisions,” said Joe Smolen, Senior Vice President of Core and Institutional Markets at Empower. “Empower has joined with Envestnet to design a state-of-the-art experience that allows plan sponsors to optimize retirement saving and planning for participants, while maintaining the flexibility to design features that work best for their organizations.”
