In Practice March 16, 2017

Ascensus Continues Push for Transparent Pricing

The company has seen an upsurge in new plans moving to fee-for-service categories. 
Reported by

Fee-based compensation models continue to grow for Ascensus, as the retirement plan and college savings service provider saw increases of more than three quarters of new plans falling into fee-for-service categories, the company reports.

Data from Ascensus’s recordkeeping platform found that use of this model continues to soar among advisers; a large surge since 2011, when only 19% of new plans on Ascensus’s platform maintained a fee-for-service compensation structure.

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Ascensus believes that this continuous move toward transparent pricing will push more advisers to change their current businesses from commission-to fee-based models.

“Our unparalleled experience in this area can help advisers align their practices with new industry standards and the needs of their clients,” says Michael Narkoff, executive vice president of sales at Ascensus.

In addition to transparent pricing, Ascensus says it offers a “conflict-free pricing philosophy,” which guarantees that alterations to client investment menus will have no effect on recordkeeping fees, essentially allowing advisers to satisfy fiduciary duties, and at the same time, offer the best options for clients at lower costs. 

Products March 16, 2017

Lockton Takes on PFaroe System for Pension Plans

The Web-based platform uses real-time analytics and projection models to manage risk.
Reported by

Retirement consulting services provider Lockton Companies has adopted PFaroe, a Web-based platform that will aim to help the firm’s Retirement Services division analyze clients’ pension plans and optimize assets and liabilities to strategically manage plan risk. PFaroe will also allow Lockton to analyze potential scenarios that measure the impact of changing economic assumptions and market conditions, as well as model alternate asset-allocation strategies.

“Pension benefit obligations remain a significant risk to many plan sponsors,” explains Pam Devling, vice president and consulting actuary at Lockton. “Our approach to retirement consulting must be very holistic; looking not just at investments and liabilities on a standalone basis, but also at their interaction and how they may be affected by plan sponsor decisions or market movements. PFaroe’s real-time insights and detailed projection models will be of tremendous value to our clients’ plan design and risk transfer decisions.”

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Matthew Seymour, CEO, RiskFirst, says: “The evolution of the pensions market in the US – whether this be through liability-driven investing or de-risking strategies – is making the ability to have real-time data across assets and liabilities vital. We are delighted that Lockton is using PFaroe to ensure that their clients have access to these important analytics in their own toolbox as they head towards their own end-games.”

Lockton Companies is a global provider of risk management, employee benefits, and retirement consulting services. PFaroe is a product of RiskFirst, financial technology business that offers risk analytics and reporting. 

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