Commonwealth Financial Network, a Waltham, Mass.-based independent broker/dealer with more than $296 billion in assets, has partnered with Vestwell to launch a new joint employer plan. This expands Commonwealth's existing partnership with Vestwell and makes the new Gateway 401(k) Plan available through more than 2,000 IBD advisors.
An employer pooled plan (PEP) is a 401(k) plan that allows multiple employers to share a single plan, with one provider handling the administration.
Vestwell currently provides third party record keeping and admin services to business clients of Commonwealth Advisers. Under this agreement, Vestwell will handle record keeping, payroll processing and administration for the Gateway 401(k) Plan. FuturePlan, a subsidiary of Ascensus, will provide compliance, testing and design of the plan. The Commonwealth will serve as the 3(38) plan fiduciary and provide investment management.
“We are seeing increased demand from our affiliated advisors and their clients for retirement planning solutions with streamlined processes that reduce the administrative burden to make workplace retirement savings solutions more accessible, ” said Mat Powers, vice president of Strategic Retirement Solutions at Commonwealth. “Vestwell's advanced technology ensures that our advisors can evolve, scale and expand their practices while providing optimal solutions for clients.”
Founded in 2016, Vestwell is led by CEO Aaron Schumm (one of WealthManagement.com's “10 To see” in 2017). Last December, the provider of record as a service and employer and individual savings platform provider raised $125 million in a round of Serie D. This was followed by a round of Serie C $70 million in July 2021.