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 pooled employer plan. This expands Commonwealth’s existing partnership with Vestwell and makes the new Gateway 401(k) Plan available through the IBD’s more than 2,000 advisors.
A pooled employer plan (PEP) is a 401(k) plan that allows multiple employers to share a single plan, with one provider managing the administration.
Vestwell currently provides recordkeeping and third-party administrator services for business clients of Commonwealth advisors. Under this deal, Vestwell will handle recordkeeping, payroll processing and administration for the Gateway 401(k) Plan. FuturePlan, a subsidiary of Ascensus, will provide the compliance, testing and plan design. Commonwealth will serve as the 3(38) fiduciary of the plan and provide investment management.
“We’re seeing increased demand from our affiliated advisors and their clients for retirement plan solutions with streamlined processes that reduce administrative burdens to make workplace retirement saving solutions more accessible,” said Mat Powers, vice president of Strategic Retirement Solutions at Commonwealth. “Vestwell’s advanced technology ensures our advisors can evolve, scale and expand their practices while delivering optimal solutions to clients.”
Founded in 2016, Vestwell is led by CEO Aaron Schumm (one of WealthManagement.com’s “10 To Watch” in 2017). Last December, the record-keeper-as-a-service and employer and individual savings platform provider raised $125 million in a Series D round. That followed a Series C round of $70 million in July 2021.
