Equitable Launches New Turnkey 401(k) Program for Small Businesses
September 20 2022 - 9:00AM
Business Wire
Addition of Retirement Gateway for Small Business simplifies
401(k) administration for plans with account values up to $500k
Equitable, a leading financial services organization and
principal franchise of Equitable Holdings, Inc. (NYSE: EQH), today
announced the launch of a new 401(k) program for small businesses,
including those with startup plans and plans with account values up
to $500k.
The new program, Retirement Gateway for Small Business, will
serve a growing need in the underserved micro 401(k) market to
create a simplified onboarding and administrative experience for
plan sponsors and financial advisors from initial consultation to
implementation.
“We anticipate the enhanced tax credits for small businesses
establishing retirement plans included in the SECURE Act 2.0
proposal will help grow the micro 401(k) market over time,” said
Keith Namiot, Chief Operating Officer of Group Retirement at
Equitable. “We have aligned our new program with where the market
is expected to grow, and we are excited to help plan sponsors and
advisors overcome the administrative barriers associated with
setting up 401(k) plans—a hurdle that has historically deterred
many small businesses from offering them.”
Retirement Gateway for Small Business is poised to capitalize on
other proposed provisions of SECURE 2.0, like the automatic
enrollment requirement for new plans created by businesses with 10
or more employees. The growth of state-mandated retirement plans is
also driving the demand for this type of program.
All new Equitable 401(k) clients with plan account values of up
to $500k have access to Retirement Gateway for Small Business. The
program offers packages of services—some of which are made
available through partnerships with unaffiliated third-party
providers—to help ease demands on plan administrators and improve
participant outcomes. They include:
- 3(16) Administrative Fiduciary: Significantly relieves
the fiduciary burdens of running a 401(k) for plan
administrators.
- 3(38) Investment Fiduciary: Provides professional
assistance with investment management tasks.
- Automatic Enrollment: Reduces the amount of time
employees spend on the enrollment process, which can lead to
greater participation and increased savings rates.
- Stadion Managed Accounts as the QDIA: Reduces the
complexity of selecting investments by automatically investing
participants in a personalized portfolio.
- 360 Payroll Integration: Reduces the amount of time and
effort spent managing census and payroll files.
“Small business owners are focused on operating their
organizations. That’s why it’s important to take the guess work out
of choosing the right retirement plan design that can help them
achieve the best participant outcomes,” said Jay Zickerman, head of
Product Innovation and Implementation for Equitable’s Group
Retirement business. “Predefined packages help advisors reduce the
administrative burden and time spent selecting a plan, point their
clients to the right amount of fiduciary coverage based on their
specific needs, and streamline the overall onboarding process.”
Another goal of the program is to help cut the time spent on
getting plans up and running by quickly connecting advisors to a
third-party administrator (TPA), who can assist with plan design,
implementation and ongoing administration.
Compass Retirement Consulting Group, Inc., a retirement plan
consulting firm, will serve as the plan’s TPA and 3(16)
administrative fiduciary for the Retirement Gateway for Small
Business program.
Equitable’s Group Retirement business offers tax-deferred
investment and retirement solutions for employer-sponsored plans
and consists of small-to-medium size businesses, educators and
other public sector employees. The business serves more than 1
million clients with $45 billion in account value and assets under
administration as of 6/30/2022.
About Equitable
Equitable, a principal franchise of Equitable Holdings, Inc.
(NYSE: EQH) has been one of America’s leading financial services
providers since 1859. With the mission to help clients secure their
financial well-being, Equitable provides advice, protection and
retirement strategies to individuals, families and small
businesses. Equitable has more than 8,000 employees and Equitable
Advisors financial professionals and serves 2.8 million clients
across the country.
A Retirement Gateway® annuity contract or any state variation
thereof is a group flexible premium combination fixed and variable
deferred annuity issued by Equitable Financial Life Insurance
Company (Equitable Financial), NY, NY. Co-distributed by affiliates
Equitable Advisors, LLC (member FINRA, SIPC) (Equitable Financial
Advisors in MI & TN) and Equitable Distributors, LLC. Equitable
Financial, Equitable Advisors and Equitable Distributors do not
provide legal or tax advice and are not affiliated with Stadion or
Compass Retirement Consulting Group, Inc. Guarantees are based on
the claims-paying ability of Equitable Financial Life Insurance
Company.
Retirement Gateway for Small Business is sold with an
employer disclosure brochure and prospectus. Be sure to review the
current disclosure brochure and trust prospectus that contains
complete information on charges, risks, expenses and investment
objectives before investing or sending money. Contact your
financial professional or the company for current copies. Certain
types of contracts and features may not be available in all
jurisdictions.
Retirement Gateway® is a service mark of Equitable Holdings,
Inc. All other trade names, trademarks, and/or service marks are
the property of their respective holders. Contract form
#2005GAC-QP, 2012QPRG, 2011RG-457 and any state variations.
GE-4947311.1 (9/22)(Exp. 9/24)
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Media: Monique Freeman mediarelations@equitable.com (212)
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