Alera Group Leaning Into Small Market, Startup Plan Creation

Alera Group’s Retirement Plan Services, a division of the insurance and financial services firm, is leaning into small plan creation demand with two recent enhancements.

On Tuesday, the Deerfield, Illinois-based firm announced enhancements to the Alera Group Pooled Employer Plan, a PEP it launched three years ago with the Standard. In the new iteration, the PEP can provide flexible plan design depending on the adopting employer’s needs, according to the firm.

“Alera Group was an early believer in the potential for PEPs to serve our clients,” said Christian Mango, executive vice president and national practice leader for Alera Group’s Retirement Plan Services division, in a statement. “The success of the Alera PEP has surpassed all expectations, and we believe we can make it even better by creating efficiencies across our retirement plan services platform at a time when interest in and adoption of PEPs has been growing.”

Christian Mango

The Standard serves as the pooled plan provider and Employee Retirement Income Security Act 3(16) fiduciary, while Alera Group provides ERISA 3(38) investment management and consulting services. Alera Group did not provide specific assets or adopting employers within the PEP.

The announcement follows a March 28 release by the firm noting a partnership with digital 401(k) provider Vestwell to offer a workplace retirement plan solution for companies with fewer than 100 employees.

“We see a tremendous opportunity to provide retirement solutions to an underserved plan sponsor and participant population that deserves access to features and solutions typically found only in larger plans, whether that be internally here at Alera Group across our Insurance and Employee Benefits client base or externally,” said Mango in a statement.

Alera is adding the service on expectations of 401(k) plan assets tripling over the next five years, in part due to the implementation of state-facilitated retirement programs and the passing of the SECURE 2.0 Act of 2022.

The firm’s partnership with Vestwell is “designed to lower costs and administrative burdens while streamlining the fulfilment of fiduciary duties compared to traditional options in the market,” according to the announcement.

“We designed the Vestwell platform to address pain points plaguing the savings industry and help deliver the leading solution in a scalable, efficient manner,” said Aaron Schumm, CEO and founder of Vestwell, in a statement.

The Alera Group solution bundles ERISA 3(38) investment governance and an adviser-managed account using Franklin Templeton’s Goals Optimization Engine.

Alera Group is an independent, national insurance and financial services firm with more than $1.3 billion in annual revenue, offering employee benefits, property and casualty insurance, retirement plan services and wealth services solutions to clients nationwide.