To entice plan sponsors and help provide some relief, John Hancock Retirement and Nationwide Retirement Plans are temporarily waiving 401(k) plan recordkeeping fees for new clients that move to their platforms.
John Hancock will waive recordkeeping fees for the first quarter of 2021 for eligible plans that sign up for a 401(k) plan with John Hancock Retirement between Aug. 1, 2020 and Dec. 31, 2020. Plans must meet certain criteria, including a commitment that must be signed prior to Dec. 31, 2020, and plan assets must convert prior to March 31, 2021, to realize any waiver.
“Activity has really picked up in the last two months across all asset segments,” explains Gary Tankersley, Head of Sales & Distribution at John Hancock Retirement. “However, employers understandably have a lot on their plate right now and upgrading their company's retirement plan may not be a top 10 priority for 2020. This waiver aims to provide a small motivation to tackle this project now versus waiting until later.”
John Hancock previously waived amendment fees for plan sponsors adopting the features under the CARES Act, as well as waived fees associated with participant COVID-19 withdrawals.
Nationwide’s Waiver
To help plan sponsors and participants prioritize retirement savings amid the economic fallout of the COVID-19 pandemic, Nationwide Retirement Plans similarly announced a new, temporary fee waiver program for plans that move to the firm in 2020.
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“We recognize companies, families and individuals are facing financial challenges right now due to the pandemic, and we’re here to support plan sponsors and their participants to help ease their burden during these challenging times,” notes Eric Stevenson, President of Nationwide Retirement Plans. “We want to help businesses balance the costs of offering retirement plans with the vital need for their employees to prepare for a secure retirement—a challenge that has been exacerbated by recent market volatility and uncertainty.”
The fee waiver is available on Nationwide’s flagship Flexible Advantage retirement plan solution as of Aug. 1, 2020. If eligibility criteria are met, Nationwide will waive its portion of the plan’s asset fee for 90 days from the Trust Effective Date (the date of first deposit to Nationwide). Other fees will still apply, the firm notes.
Nationwide previously indicated that it was not charging plan sponsors fees for adopting the features under the CARES Act and that it was waiving fees for any CARES Act withdrawal transactions.
