PEOs are organizations that hire a company’s workforce and then lease it back to them, assuming all of the client company’s human resources responsibilities and employment risks in the process.
The arrangement seeks to offer administrative, legal and logistical advantages to smaller businesses. However, PEOs have found meeting the retirement plan benefit needs of their smaller clients problematic.
PEOs would use Correll Co to establish a master plan. Each employer in the PEO would customize the plan, choosing eligibility, contribution and vesting provisions for its own plan under the master plan umbrella.
The PEO master plan sponsor can select investment options from virtually all mutual fund families.
Correll Co. provides recordkeeping, reporting and compliance services for the master plan as well as for the client plans. Services include:
- daily valuation recordkeeping
- Internet and voice response telephone access to accounts, allowing participants to obtain account values and make allocation changes
- Internet access to participant account information for plan sponsors
- same-day, late-day mutual fund transactions.
Correll Co is the second provider this week to introduce a PEO retirement planning solution. Earlier in the week Transamerica Retirement Services introduced “the Plan” to the PEO market (see Transamerica Offers PEOs “the Plan” ).