FiduciaryxChange, an AmericanTCS solution that provides comprehensive fiduciary services to help 401(k) plan sponsors, advisors and administrators effectively meet their obligations, announced it registered its 54th Pooled Employer Plan (PEP) as a growing number of employers continue to utilize the firm as an outsourced manager of retirement plans.
FiduciaryxChange launched with three PEPs — 401(k) retirement plans allowing unrelated businesses to participate in one defined contribution plan — and 36 fiduciary clients. Today, the firm works with more than 50 PEPs and 450 fiduciary clients. It has grown its assets from $200 million to more than $1 billion in the same period.
The firm’s success is a factor of the efficiencies it provides to employers and financial advisors along with the passage of the 2019 SECURE Act, which improved access to retirement plans as an employee benefit.
“Financial advisors who work with employer-sponsored retirement plans can hit a critical mass where they are unable to service a high volume of clients,” said Jeff Atwell, Senior Vice President, Fiduciary Services at AmericanTCS Fiduciary Services. “At the same time, plan sponsors don’t have the expertise or time to manage a retirement plan. FiduciaryxChange offers the ability and flexibility to help advisors and plan sponsors efficiently manage their needs while also taking on the regulatory and auditing responsibilities.”
He estimates FiduciaryxChange has added 15 to 25 clients every month as PEPs continue to rise in popularity.
“Entrepreneurs are experienced in running businesses, not retirement plans, but many employers know they have to offer benefits like defined contribution plans to compete in a tight labor market,” Atwell said. “FiduciaryxChange allows them to be competitive in the marketplace while they offload the audit, fiduciary and management responsibilities to us.”