The Society for Human Resource Management on Wednesday launched a 401(k). The SHRM 401(k) Solutions by Raymond James program aims to offer a marketplace for employers to shop for a retirement plan with better pricing and time savings, while potentially outsourcing significant liabilities, risks and expertise to successfully manage a plan.
HR professionals often lack both the time and expertise to administer and manage the complexities of offering a 401(k), SHRM says, and this solution is designed to simplify the process. As plan sponsors, employers might outsource various fiduciary functions, including the investment management, plan administration, recordkeeping and educational components of the plan.
With this new program, SHRM aims to help smaller employers offer workers high-quality, competitively priced investment options that typically are available only with large employers.
“We have employees coming out of one of the most challenging economic times of their lives, eager to proactively save,” said Nick Schacht, the society’s chief global development officer. “Without that coveted retirement plan in place, workers are simply less likely to invest in their future.”
Three in four workers are looking for more resources to help them with their overall financial wellbeing, Schacht said.
The new program will offer “100% fee transparency,” according to Raymond James.
“Small businesses need an efficient and cost-effective option to offer these important savings vehicles for their employees, and we’re proud to be able to extend our 401(k) solutions offering to interested SHRM-affiliated employers,” said Scott Curtis, president of Raymond James’ Private Client Group.
The new benefit also offers a complimentary benchmarking report so employers can assess their current plan fees, have service providers compete for their business and identify where they can upgrade quality and service while potentially reducing costs.