Pershing, a BNY Mellon company, has rolled out its retirement plan network, a new solution to help broker-dealers, investment advisors and registered investment advisors (RIAs) grow their retirement plan business.
Pershing’s retirement plan network is an open-architecture platform that allows advisors to connect to independent recordkeepers, hold assets in custody, and to leverage an integrated suite of investment products, retirement plan tools and practice management solutions.
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The network will be rolled out through the first quarter of 2015.
Pershing head of retirement solutions Rob Cirrotti said, "As one of the largest custodians of individual retirement account (IRA) assets, the retirement market is important to Pershing and our clients. The defined contribution system, however, continues to be the primary retirement savings vehicle for Americans and advisors are playing an increasingly important role in driving better retirement outcomes. Pershing’s Retirement Plan Network is a natural extension of the solutions we offer to address the needs of the retirement market."
The retirement plan market continues to grow, with defined contribution (DC) assets expected to increase 5% to 6% per year through 2019.
As of the third quarter of 2014, Americans held $6.6 trillion in DC retirement plans, including 401(k) assets.
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By GlobalDataAdditionally, DC plan rollovers are fueling the growth of IRA assets, which are expected to exceed $11.5 trillion by the end of the decade.
Despite the increase of 401(k) plans and other DC assets, many American households are not adequately prepared for retirement, according to data from the Federal Reserve.
Cirrotti added, "The growth of DC plans and IRAs make the retirement market an attractive space for advisors and presents them with an opportunity to help meet plan sponsors’ need for better guidance in preparing their plan participants for retirement. In our conversations with clients, we recognized their desire for assistance with their retirement plan business, so we developed the Retirement Plan Network in response."
In addition to helping clients establish or expand their retirement plan business, Pershing’s Retirement Plan Network is designed to help advisors address the need for greater transparency and oversight of their retirement business.
What differentiates Pershing’s solution in the market is that it is a conflict-free custody solution integrated into a single platform on which advisors can serve the needs of retirement plan sponsors and individual investors.
Through the Retirement Plan Network, advisors have access to a host of resources that will enhance their service for retirement plans.
Retirement Plan Network will enable advisors to access and leverage deep integration of independent recordkeepers through NetX360, Pershing’s technology platform.
Currently, recordkeepers include Allen, Gibbs & Houlik, L.C.; Aspire Financial Service; Benefit Consultants Group; DailyAccess Corporation; July Business Services; and Sentinel Benefits & Financial Group. The network will expand extensively over time to include additional regional and national recordkeepers.
An open-architecture investment platform that will have a highly integrated management capability for advisors to manage investment models or access third-party asset managers.
Pershing’s Retirement Plan Network’s menu of investment choices features mutual funds, stable value funds and exchange-traded funds through managed models.
Through NetX360, advisors will have a single point of access for both individual and retirement plan businesses that will offer a range of support, including practice management and an integrated set of retirement plan tools and solutions that will enable advisors to create proposals, view plan investments, conduct investment reviews, facilitate IRA rollovers, select recordkeepers and access plan sponsor and participant education materials.
"As a leading service provider to advisors, we are well positioned to support the large number of advisors who sell and service retirement plans. We are excited to expand our solutions to help them efficiently grow their retirement plan practice and drive better retirement outcomes for plan sponsors and their plan participants," further said Cirrotti.
