The Lincoln Financial Group has announced that it is enhancing its retirement plan options by launching a pooled employer plan in collaboration with NPPG Plan Professionals and Morningstar Investment Management.
Named OpenPEP, the new offering provides enhanced personalization through customized plan design options and qualified default investment alternatives (QDIAs). It also is differentiated in the market by offering in-plan guaranteed income as an investment option, according to the Oct. 28 announcement.
“Financial security and guaranteed income are increasingly important for employees, and through OpenPEP Lincoln is providing small business owners with a competitive advantage, while giving their employees confidence in a more secure financial future,” notes Ralph Ferraro, Senior Vice President of Retirement Plan Products and Solutions at Lincoln Financial Group.
As the pooled plan provider (PPP), NPPG acts as the lead sponsor and Morningstar Investment Management builds and manages the investment lineup of the PEP as the 3(38) investment provider.
The target date solution for OpenPEP is YourPath target-date plus risk portfolios, built with BlackRock iShares. In addition, clients can elect to use Lincoln PathBuilder Income powered by YourPath or Stadion’s Storyline Managed Account as their QDIA option.
“The PEP provides adopting employers the opportunity to leverage pooled buying power for administrative costs and other outsourced professional services,” notes Michael M. Salerno, founder and CEO of NPPG. “By joining OpenPEP, employers reduce administrative and fiduciary burdens associated with retirement plan management, thus, allowing the company to concentrate on strategic growth initiatives while attracting company talent.”
“Too many working Americans aren’t saving for retirement because they don’t have access to an employer-sponsored plan, which we believe is going to have serious economic and social consequences in the future unless we fix it,” adds Brock Johnson, President of Global Retirement and Workplace Solutions at Morningstar Investment Management. “We feel strongly that PEPs like Lincoln’s OpenPEP will help us close this access gap and are excited to be part of the innovation that is happening in this space.”
