Transamerica, in partnership with the Cetera Financial Group, have announced the availability of a new pooled plan solution, making it easier for small businesses to offer a retirement plan.
The Cetera Advantage(k) GPS is primarily geared toward small and mid-sized businesses, allowing employers to reduce their administrative burden, mitigate certain fiduciary risks and benefit from cost efficiencies, according to the announcement. In addition, their employees enjoy the benefits of a workplace retirement plan and the tax-deferred advantages of a typical 401(k) plan.
Under the arrangement, Transamerica will serve as the plan’s recordkeeper. Cetera Retirement Plan Specialists — a Cetera-owned third-party administrator — will serve as the plan’s 402(a) and 3(16) fiduciaries, and will also manage the plan’s day-to-day administrative duties. The pooled plan solution is available solely through Cetera-affiliated advisors.
“We have seen an increase in employers offering workplace retirement plans, expanding coverage for millions of Americans,” says Adeline Wong, Head of Retirement Plan Strategy and Solutions at Cetera Financial Group. “However, for some small business owners, the administrative hurdles to set up and maintain a 401(k) plan, and the investment expertise required to select and maintain an appropriate, high-quality investment menu, have been a challenge. Our new solution, in collaboration with Transamerica, aims to reduce the administrative tasks and liability for the business owners so they can focus on what matters most — running their business.”
“Transamerica is proud to partner with Cetera Financial Group, a retirement industry leader in supporting plan sponsors and empowering advisors to serve their clients with excellence,” adds Phil Eckman, Transamerica’s President of Workplace Solutions. “Together with Cetera, we share a vision of making it possible for more companies to offer retirement plans to their employees. With the Cetera Advantage(k) GPS, we are demonstrating our shared commitment to finding innovative solutions that meet the needs of Cetera’s business owner clients and their employees.”