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Products April 10, 2013
Vanguard Offers Small-Plan Solution to TPAs
Vanguard has expanded the availability of its
low-cost 401(k) plan service for small to midsize businesses to plan sponsors
that work with third-party plan administrators (TPAs).
Reported by Kevin McGuinness
Vanguard’s Retirement Plan Access service, which was introduced in October 2011, offers low-cost funds and a retirement plan package combining investments, recordkeeping, and other services. The service was initially directed toward plan sponsors, as well as fee-only advisers and planners who work with sponsors.
The service is now also available to TPAs, which typically provide plan design, compliance, administrative support, and other assistance to plan sponsors. As a result, these sponsors can continue to work with their TPA, while gaining low-cost investments and recordkeeping for their participants.
“Industry research has shown that Americans will save more through 401(k) and other defined contribution plans with proper incentives and services,” said Chris McIsaac, managing director of Vanguard’s Institutional Group. “Making Vanguard Retirement Plan Access available to a wider group may encourage more plan sponsors to offer plans that are low cost, effective and easy-to-use—all of which is good news for workers who need help saving for retirement.”