ROCHESTER, NY, June 16, 2022 /PRNewswire/ — Paychex, Inc., a leading provider of integrated human capital management software solutions for human resources, payroll, benefits and insurance services, surpasses 100,000 milestone for the number of 401(k) customers served, who now administer plans for 103,595 customers at April 2022. This builds on the company’s record of being ranked the largest 401(k) accountant in the United States by total number of plans for the 11e consecutive year by PLANSPONSOR magazine in June 2021.
Paychex’s growth in 401(k) recordkeeping was partly spurred by the introduction of the company’s Pooled Employer Plan (PEP) in early 2021. Launched following the SECURE Act of 2019, the Paychex PEP offers business owners a simple and cost-effective 401(k) plan option. Paychex was one of the first to introduce PEP among pension plan providers.
“In today’s competitive hiring environment, offering a retirement savings benefit is not a luxury; it’s a necessity to attract and retain talent. On top of that, we continue to seeing more employers offer plans and states passing mandatory retirement savings programs meant to help address the nation’s retirement savings crisis,” said Michael Majors, Vice President, Human Resources Services, Paychex. “As the largest 401(k) accountant in the United States, we listen to the needs of our customers and work with them to provide the best 401(k) plan for their employees and their business.”
Paychex offers affordable 401(k) plans for businesses of all sizes, with features like:
- Full Paychex integration for increased efficiency – The ability to integrate retirement into Paychex’s full suite of solutions, including payroll, HR services, insurance, and more. through Paychex Flex®can help plan sponsors reduce administrative time and costs, improve reporting and meet their fiduciary obligations.
- Increased participant accessibility and convenient investment management – With the ability to enroll in a plan with a few simple clicks, participants can view or edit 401(k) options from any device. Members can also maximize the potential of their retirement savings with a host of tools, including savings calculators, automatic contribution increases, and more. In addition, participants have access to personalized investment advice from third-party experts.
- Fee transparency – Paychex provides each plan administrator with a 401(k) plan fee disclosure and prepares and provides plan administrators with the required participation fee disclosure. With a concession return feature, most 401(k) plans with Paychex return revenue share payments to the plan, ensuring fee equalization, share class neutrality, and fee transparency.
- Plan accessibility on all devices – Paychex’s mobile technology allows members to view and manage their retirement plan from anywhere. Participants can easily access their account balance, set up loans, view loan information, manage investments, adjust carryover amounts, update personal account information, and use calculators to ensure are well on their way to achieving their retirement goals from their mobile device.
- Investment flexibility and fiduciary solutions – Plan sponsors can choose their own plan investments from a diverse range of thousands of choices, with no ownership requirements. Paychex also offers plan sponsors access to optional third-party service providers 3(21) and 3(38) that help plan sponsors select investment choices and mitigate fiduciary risk.
- Common Employer 401(k) Plan Option – Paychex launched the Paychex Pooled Employer 401(k) Plan (PEP) in January 2021, providing business owners with a simple and cost-effective plan option. Paychex acts as both plan sponsor and plan administrator of the PEP, relieving employers of significant fiduciary burdens and most administrative burdens. PEP is particularly well suited to small and medium-sized businesses that may not have been able to offer a retirement plan before due to lack of cost-effective plan options, time, or resources to manage retirement. complex administration of the plan. PEPs also offer more options than state-mandated retirement savings programs. PEPs can also be a beneficial option for employers with an existing plan looking to reduce fiduciary and administrative responsibilities. Since its launch, the Paychex PEP has added more than 10,000 customers.
For more information, visit 401(k) and retirement services at Paychex.com. Financial services professionals looking to offer flexible retirement plans to their clients can learn more about financial advisor partnerships with Paychex.
Paychex, Inc. (Nasdaq: PAYX) is a leading provider of integrated human capital management software solutions for human resources, payroll, benefits and insurance services. By combining its innovative software-as-a-service technology and mobility platform with personalized, dedicated service, Paychex allows small and medium business owners to focus on growing and running their business. With 50 years of industry expertise, Paychex has served more than 710,000 payroll customers worldwide. May 31, 2021 in the United States and Europeand pays one in 12 US private sector employees. Learn more about Paychex by visiting paychex.com and stay connected at Twitter and LinkedIn.
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