Vanguard Group and Ascensus, a provider of record keeping and other retirement plan services, in the fourth quarter will begin offering bundled services for 401(k) and profit-sharing plans with assets of less than $20 million, confirmed Linda Wolohan, a Vanguard spokeswoman.
Although Vanguard funds have been used by small defined contribution plans “for quite a while” and the firm also provides record-keeping services for some small DC plans, the new service will “broaden our reach” in the smaller-asset market, Ms. Wolohan said in an interview Wednesday.
The bundled services will include investment options, record keeping, call center services and compliance testing, according to a Vanguard news release. The services also include participant education and optional services such as participant advice, self-directed brokerage, and trustee services, the release said.
Vanguard joined with Ascensus because “this is a good fit,” Ms. Wolohan said. “Ascensus is one of the top providers in this (small plan) market.”
The service will be offered directly to DC plans “as well as to fee-only advisers who serve sponsors,” the news release said.