Group Plan Systems, LLC (GPS) has recently announced a new addition to their roster of ERISA 3(38) fiduciary options for employer-sponsored retirement plans. Envestnet Retirement Solutions (ERS) has joined forces with GPS to provide banks, broker-dealers, and investment advisers with an option to outsource investment management for employers participating in GPS’ Navigator pooled employer plan (PEP).
One standout feature of GPS Navigator is the ability to have separate investment sleeves within the same PEP. This flexibility caters to the diverse needs and preferences of financial institutions, some of which prefer to outsource their investment fiduciary responsibilities.
Pete Swisher, Managing Partner at GPS, emphasized the significance of this partnership, stating, “Envestnet will help us expand the opportunity for financial institutions to offer a PEP solution without taking on the added fiduciary responsibility. Combining Envestnet’s 3(38) capability with our operational fiduciary role as the Pooled Plan Provider enables firms to capitalize on the opportunities with PEPs in a more scalable manner.”
Similarly, Sean Murray, Head of Retirement at Envestnet, expressed enthusiasm about the collaboration, highlighting Envestnet’s commitment to providing the technology and support necessary for their clients to better serve their customers. He also commended GPS for its innovative approach in the market, noting that Envestnet’s retirement and investment management capabilities complement it well.
With the introduction of Envestnet Retirement Solutions, GPS anticipates a surge in new plan formation, spurred by Federal tax credits and state-run programs that offer incentives for advisers to engage with employers who have not yet taken action. The addition of a recognized brand like ERS is expected to generate even more interest from financial professionals who are focused on attracting employers seeking a private solution as opposed to one mandated by State government.
Group Plan Systems, LLC (GPS) provides independent fiduciary oversight, enabling recordkeepers, TPAs, and financial institutions to serve retirement plans with confidence and at scale. For more information, individuals can visit the GPS website at http://www.groupplansystems.com or reach out via email at info@groupplansystems.com.
It is important to note that GPS and Envestnet are separate and unaffiliated firms. This partnership should not be viewed as a recommendation or endorsement of any particular product, service, or firm. Plan sponsors will always retain some fiduciary responsibility and should therefore conduct their own initial and ongoing research and due diligence on third party service providers, including trustees, investment managers, recordkeepers, and third-party administrators.
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