401k Group Plan Solutions – Reduce Costs & Administrative Burden
WHAT IS A BRIGHTER WAY 401(K) GROUP PLAN SOLUTION?
A Brighter Way Group Solution Plan (GPS) connects multiple single employer retirement plans through a shared arrangement. However, each participating employer maintains their own separate plan identity.
How the Pooled System Works
Through this pooled arrangement, companies share common services including a plan administrator, named fiduciary, investment menu, and trustee. Furthermore, participating employers don’t need to share a common association or industry connection.
Significant Cost Savings
As a result, this solution reduces administrative burden while transferring certain risks from employers. In addition, companies potentially enjoy lower overall plan costs through economies of scale.
Professional Team Assembly
Meanwhile, the GPS brings together a team of professionals on each employer’s behalf. Therefore, business owners can focus on running their company instead of managing complex retirement plans.
WHY SHOULD YOU CONSIDER A BRIGHTER WAY 401(K) GROUP PLAN SOLUTION?
Benefits to Advisors
A Brighter Way 401(k) GPS helps you successfully scale your retirement plan advisory practice. As a result, this scaling can increase your firm revenue and profitability.
Furthermore, an ERISA 3(38) investment manager handles fund selection and monitoring using low-cost institutional funds. Therefore, this eliminates the burden on you and your client.
Expert Investment Management
The 3(38) manager holds CEFEX certification and has created a custom target date fund series. In addition, these funds offer conservative, moderate, and aggressive options for each vintage year.
Moreover, the service provides quarterly investment manager reports for your client reviews. Consequently, this saves you hours of review time while letting you focus on improving plan metrics.
Benefits to Plan Sponsors
A Brighter Way 401(k) GPS gives your employees the best opportunity to save for retirement. Furthermore, it accomplishes this through simplicity, transparency, scale, and responsive local service.
Proven Track Record
The GPS bases its approach on the proven practices of Rea’s own 401(k) plan. As a result, this plan achieves above-average participation and contribution rates at below-average costs.
Competitive Platform
Therefore, you can adopt a 401(k) platform that offers competitive pricing while incorporating industry best practices. In addition, CPAs who value careful processes and transparency designed this platform.
Roles of the Professional Services Team
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Plan Administrator – Rea
- Serves as named fiduciary
- Performs administrative functions to keep plans compliant
- Handles day-to-day operations including Form 5500 completion and filing
Record Keeper – Transamerica
- Provides more than 85 years of retirement experience
- Leads the market in pooled plan solutions since 2001
- Supports plan participants through retirement
Financial Advisor – Selected by Plan Sponsor
- Helps sponsors determine plan objectives and design options
- Offers services to increase employee participation
- Provides comprehensive education programs for employees
Investment Manager – GoalPath Solutions
- Takes responsibility for selecting and monitoring investment lineup funds
- Ensures professional oversight of all investment decisions
Our Service Leader
Certifications & Associations
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Disclosures
Group Plan SolutionSM (GPS) is a collection of single employer-sponsored plans that may share a common plan administrator, named fiduciary, investment menu, and plan year. Unlike a multiple employer plan (MEP), certain plan qualification and ERISA requirements are applied at the individual plan level. An employer participating in the arrangement retains certain fiduciary responsibilities, including responsibility for retaining and monitoring the 3(16) plan administrator, for determining the reasonableness of its fees, and for periodically reviewing the arrangement as a whole.
Transamerica Retirement Solutions, LLC is the recordkeeper and does not act as a plan fiduciary.
Before adopting any plan, sponsors should carefully consider all of the benefits, risks, and costs associated with a plan. Information regarding retirement plans is general and is not intended as legal or tax advice. Retirement plans are complex, and the federal and state laws or regulations on which they are based vary for each type of plan and are subject to change. In addition, some products, investment vehicles, and services may not be available or appropriate in all workplace retirement plans. Plan sponsors and plan administrators may wish to seek the advice of legal counsel or a tax professional to address their specific situations.
Choosing a pooled plan does not eliminate the need for plan sponsor to determine whether a plan is appropriate for their specific circumstances. No investment decision should be made based on this information without first obtaining appropriate professional advice and considering the circumstances. Contact your tax advisor, accountant and/or attorney before making any decisions with tax or legal implications.
Information contained herein may have been obtained from a range of third-party sources and is believed to be reliable but not guaranteed.
GoalPath Solutions is an independent Registered Investment Advisor performing as the plan’s 3(38) investment manager. As a named fiduciary to the plan, GoalPath is responsible for selecting, monitoring, and ongoing due diligence of funds in the lineup.
Logos and trademarks are the intellectual property of their respective owners. Rea & Associates, GoalPath Solutions, Transamerica and The Wagner Law Group are unaffiliated.