Digital 401(k) provider Vestwell has teamed up with Commonwealth Financial Network and FuturePlan to launch a new pooled employer plan, Vestwell announced in a news release Sept. 19.
The Gateway 401(k) Plan will be available to employers through Commonwealth’s more than 2,000 affiliated advisers, the company said.
Vestwell will serve as the pooled plan provider, handling record-keeping, payroll processing and administration for the plan. Commonwealth, a registered investment adviser , will serve as the 3(38) investment manager, while FuturePlan, a unit of 401(k) provider Ascensus, will provide administrative and compliance capabilities.
Aaron Schumm, founder and CEO of Vestwell, said the PEP is positioned as a way for Commonwealth advisers to scale their businesses while also “generating more opportunities for everyone to access retirement savings programs.”
“Commonwealth is a key partner of ours, and we’re excited to offer their advisers the Gateway 401(k) Plan solution,” Schumm said in the news release.
Pooled employer plans such as Vestwell’s Gateway offering are a relatively new type of plan that began coming to market in 2021, thanks to the SECURE Act, which greenlighted their creation. The new pooled plans give employers in unrelated businesses the opportunity to combine their 401(k) plans into a single pooled plan to lower their costs and reduce their administrative workload and fiduciary responsibility.
“We’re seeing increased demand from our affiliated advisers and their clients for retirement plan solutions with streamlined processes that reduce administrative burdens to make workplace retirement saving solutions more accessible,” said Mathew Powers, Commonwealth’s vice president of strategic retirement solutions, in the news release.
Vestwell did not immediately respond to questions about the PEP’s cost and investment lineup.
