Private-Label Pricing for 401k Enginuity
401k Enginuity is licensed annually to Plan Providers for a fee based upon two components: the number of plans supported, and the number of eligible plan participants within these plans. There is also a one-time 401k Enginuity system setup fee that covers installation and customization to the Provider's specifications.
- How a Provider uses 401k Enginuity - as a self-service center for clients to run their own 401k plans, as a full-service center for Provider personnel to run clients' 401k plans, or as a concurrently-operating combination of the two - in no way affects 401k Enginuity licensing fees.
- Any asset-based fees or investment commissions generated via 401k Enginuity are completely the Provider's business, and the Provider's to keep or distribute. 401(k) Enginuity is paid only the fees listed below, and does not share in the Provider's asset-based compensation.
- A licensed Provider sets and retains all administration fees charged to its clients.
- 401k Enginuity can be licensed to service any number of 401(k) plans, with any number of plan participants. There is no capacity maximum, owing to 401k Enginuity's designed-in, enterprise-caliber scalability.
401k Enginuity Pricing Specifics
401(k) Enginuity is a low-cost, open architecture 'end-to-end' 401(k) outsourcing platform and service geared to needs of Plan Providers, including TPAs, and financial advisors. 401(k) Enginuity includes:
- Very low cost to setup and maintain.
- Branded, custom website with secure Plan Sponsor, Plan Participant, Plan Provider* and Plan Advisor Gateways.
- Special secure Plan Advisor Gateway*, proving a detailed, real-time overview of clients' daily activity. Print reports and perform compliance testing at the click of a mouse.
- Access to unlimited selections of no-load mutual funds (with NO hidden fees or charges). Any revenue generated from plans' assets are the sole property of the Plan Provider or financial advisory firm, not Pension Systems Corporation.
- Custody of plan assets at top-tier custodians such as TD Ameritrade and Charles Schwab.
- Management of purchases, sales and distributions via secure encrypted e-file interaction with custodian(s) performed after market close by Pension Systems Corporation.
- Prototype plan document preparation and ongoing mandated amendments available on a plan-by-plan basis for a slight additional fee per plan.
- Technical support for plan sponsors, including annual tax form preparation assistance, on a plan-by-plan basis for a slight additional fee per plan.
- Secure access to value-added investment advisory services such as Mastery Point, Clear View, and Financial Engines
- At the discretion of the Plan Provider or financial advisor, both Pension Systems Corporation and the asset custodian can invoice the 401(k) plan sponsor directly for service. Plan Providers and financial advisors can bypass the responsibility for collecting recordkeeping or custody fees, or handling plan contributions or distributions.
I. One-Time Set-Up Fee Per Separate Plan Installed on the Plan Provider's Custom Platform*
- New single plan setup fee (including plan document preparation): $500.
- Takeover existing plan setup fee (including plan document preparation): $500 plus $75/hr
II. Reoccurring Annual Fee Per Plan Hosted on the Plan Provider's Custom Website
- $500 per plan, plus $25 per-eligible participant.
*Running a custom website and plan platform for a Plan Provider, Pension Systems Corporation requires a minimum annual fee is $30,000 ($7,500 quarterly), which is off-set by the annual plan and annual participant fees paid to Pension Systems Corporation. This minimum annual fee is NOT an additional charge, but a dollar-for-dollar offset. This minimum annual charge can be met, for example, with as few as 30 plans with an average head-count of 20 participants per plan:
- Plans: 30
- Participants: 20/plan
- Per Plan Cost: ($500/plan + $25/participant)
- Total wholesale cost: $30,000 per year, complete!
Setting up a new 401(k) plan on the Plan Provider's custom platform is economical and straight-forward. The one-time setup fee for takeover plans is higher than the setup for new plans, because of the complexities involved in converting an existing plan's historical data for inclusion in our database. Pension Systems Corporation has developed a number of easy to use software programs that simplify the data conversion process.
Plan Provider (TPA, Advisor, Payroll Service Provider, etc) pays a one-time website branding fee of $1000 to setup and brand a custom website for its plans. This branded website is linked to the Provider's existing website, so that sponsors and plan participants can login to the Provider's 401(k) directly from the Provider's website. The custom website we build for the Plan Provider is SSL encrypted and password-protected.
The Plan Provider's designated asset custodian (i.e. TD Ameritrade, Matrix, Schwab, etc) typically charges nominal asset-based and fully disclosed fees for each separate plan on the Provider's platform. These fees are negotiable, and based upon the plan's size and holdings asset s. It is important to note that Pension Systems Corporation does not receive or retain any portion of these, or any other custody or asset-based fees paid by any source. All commissions and asset-based fees generated by the Provider's plans are either returned to the plans to reduce their ongoing costs, or paid-out directly to Provider. Pension Sytems Corporation will not retain for itself any asset-based fees. All fees generated from plan assets are the property of the Plan Provider, Plan Advisor, or Plan itself.