Competition for new business is heating up among record keepers as some begin to waive fees for plan sponsors that switch to their platforms.
John Hancock Retirement said it will drop record-keeping fees for 401(k) plans that move to its platform between Aug. 1 and Dec. 31. The fees will be waived for the first quarter of 2021.
"Employers understandably have a lot on their plate right now and upgrading their company's retirement plan may not be a top 10 priority for 2020," said Gary Tankersley, John Hancock's head of sales and distribution, in a news release. "This waiver aims to provide a small motivation to tackle this project now vs. waiting until later."
John Hancock's record-keeping fee waiver is available for 401(k) retirement plans that meet certain criteria and will not apply to startup plans, multiplan and defined benefit plans, it said.
The firm's announcement follows a similar move by Nationwide, which also will offer a new fee waiver program to plans that move to Nationwide in 2020.
"We recognize companies, families and individuals are facing financial challenges right now due to the pandemic, and we're here to support plan sponsors and their participants to help ease their burden during these challenging times," said Eric Stevenson, president of Nationwide retirement Plans, in a news release.
Nationwide's fee waiver is available on its Flexible Advantage retirement plan platform beginning Aug. 1. If eligibility criteria are met, Nationwide will waive its portion of the plan's asset fee for 90 days from the date of the first deposit to Nationwide.