HUB Retirement and Private Wealth rolled out a new offering last week—specifically aimed at providing a competitive alternative for employers confronted with a state-run IRA mandate.
The offering—HUB Retirement Select—was described in a press release as “a comprehensive solution for small- to mid-sized businesses looking for amenities traditionally afforded to large organizations, bundled into a simplified, single retirement plan solution.”
In what seems to be a unique positioning, the managed account solution—rolled out in partnership with five recordkeeping partners and one TPA—was touted in a press release as “a highly competitive alternative option to state-mandated and voluntary retirement plans for employers.” The release goes on to note that “in the absence of a federal mandate, nearly a dozen U.S. states (California, Illinois, Oregon, Washington, New York, Vermont, Connecticut, New Jersey, Massachusetts, and Maryland) and one city (Seattle) have already enacted mandated and voluntary retirement programs.”
Adam Sokolic, chief operating officer (COO) for Hub RPW, commented further that the program offers an alternative for employers “who want something more.” Not structured as a pooled employer plan (PEP)—though Sokolic says the firm will likely continue to “move in that direction”—it’s designed to deepen HUB’s retirement plan relationships with its mammoth customer base—one that today includes 6,000 retirement plans.
The program offers access to 3(38) investment management, as well as quarterly monitoring reports alongside tools to monitor and optimize their plan. Participants can, of course, opt out of the managed account solution—which is not currently positioned as a qualified default investment alternative (QDIA), according to Sokolic. HUB RPW provides investment advisory services on more than $93 billion in assets through its SEC-registered RIAs.
In 2021 he sees a growing emphasis on financial wellness and managed accounts—to equip their member organizations with “more hand-to-hand combat resources,” plugging in ancillary services alongside wellness offerings, including HUB’s extensive voluntary benefit offerings like life insurance. The firm plans to do “a lot more” with health-wealth connectivity, Sokolic says.
The rollout occurs on top of what has been a busy 18 months for HUB, which just closed one deal, on top of another three to five, and the search for other potential partners continues, according to Sokolic. As for this activity in the midst of a number of other aggregations, he notes that the focus for advisory firms is to find a pattern to grow your business. “There’s no one answer for everyone,” he cautions. Indeed, Sokolic was getting ready to travel for a due diligence review—for him, as for many of us, the first business-related trip in some time.
That said, he acknowledged the growing acceptance of video delivery in our business. “It’s not going away,” he commented.
Sokolic did comment that he had already registered for the NAPA 401(k) Summit (Sept. 12-14). “I miss my friends!”
