Transamerica recently announced that it is partnering with DWC – The 401(k) Experts to launch two new pooled plan solutions designed to streamline retirement plan management for businesses of all sizes.
The DWC 401(k) Pooled Plan Solutions feature the expertise of DWC – The 401(k) Experts, Transamerica and Leavitt Retirement Partners. With two plan options under a single recordkeeping structure, employers can implement either The DWC 401(k) Retirement Plan Exchange solution or The DWC 401(k) Pooled Employer Plan (PEP).
According to the announcement, this structure allows employers the flexibility to change retirement plan structures to accommodate growth without any disruption to their employees. The PEP can also support certain grandfathering of mandatory provisions forthcoming with the SECURE 2.0 Act for existing plans that qualify.
The Exchange solution, meanwhile, is a collection of single employer-sponsored plans that may share a common plan administrator, named fiduciary, investment menu, and plan year.
“With DWC 401(k) Pooled Plan Solutions, we’re providing businesses the flexibility to adapt their retirement plans as they grow, without the hassle of a full plan conversion,” said Keith Clark, managing director at DWC. “This flexibility makes it easier for employers to scale their plans to meet changing needs, all while maintaining simplicity and efficiency.”
Employers that adopt these plans will benefit from reduced fiduciary responsibilities, simplified administrative tasks, and potential cost savings. Through the PEP’s single audit feature, employer 401(k) plans with over 100 participants with balances may benefit from significantly reduced audit costs and are no longer solely responsible for dealing with the annual plan audit.
“Workplace retirement plans are essential in helping employees prepare for a secure financial future, but the complexities involved can be overwhelming for many employers,” stated Darren Zino, head of retirement distribution at Transamerica. “With DWC 401(k) Pooled Plan Solutions, we’re offering a streamlined, flexible approach that reduces fiduciary risk and administrative burdens, allowing employers to focus on growing their businesses while providing valuable benefits to their employees.”
Whether through the Exchange or the PEP, employers gain access to a 3(38) investment manager responsible for selecting and monitoring investments, a 3(16) plan administrator overseeing daily plan operations, and a support team of third-party administrators, recordkeepers, and fiduciary service providers.
“As the 3(38) investment fiduciary, we deliver quality investment services with the highest degree of fiduciary protection,” noted Taylor Dance, managing director and consultant for Leavitt Retirement Partners. “Our collaboration with Transamerica and DWC will help countless individuals achieve financial security in retirement.”