FiduciaryxChange Registers 54th PEP as Defined Contribution Plan Popularity Swells

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FiduciaryxChange, a firm that helps 401(k) plan sponsors, advisors, and administrators effectively meet their obligations, has registered more than 50 Pooled Employer Plans (PEPs) in four years as a growing number of employers utilize the firm as an outsourced retirement plan manager.

The Pittsburgh-based organization recently registered its 54th PEP, a 401(k) plan that allows unrelated businesses to offer their employees a defined contribution option. FiduciaryxChange is part of AmericanTCS, which delivers a wide array of custody and trust, retirement services, wealth management and technology software automation to its clients.

Jeff Atwell, Senior Vice President, Fiduciary Services at AmericanTCS Fiduciary Services, said FiduciaryxChange is adding 15 to 25 clients monthly as PEPs continue to increase in popularity. The firm launched on Jan. 1, 2020, with three PEPs, 36 fiduciary clients and $200 million in assets. Today, it has more than 50 PEPs, 450 fiduciary clients and more than $1 billion in assets.

“Entrepreneurs are experienced in running businesses, not retirement plans, but many employers know they have to offer benefits like defined contribution plans to compete in a tight labor market,” Atwell said. “FiduciaryxChange allows them to be competitive in the marketplace while they offload the audit, fiduciary and management responsibilities to us.”

The firm credits its success partly to the passage of the 2019 SECURE Act, which improved access to retirement plans as an employee benefit, and the efficiencies it provides to employers and financial advisors.