Hub RPW Launches Retirement Plan Solution for Small to Midsized Businesses
The solution offers amenities traditionally offered to larger companies and Hub RPW says it is ‘a sophisticated retirement option if an employer is in a state requiring a mandated retirement plan.’
Hub Retirement and Private Wealth (Hub RPW) has announced the launch of the “Hub Retirement Select” program.
While offering an advanced preview of the solution to PLANSPONSOR, Adam Sokolic, chief operating officer (COO) for Hub RPW, said the goal of Hub Retirement Select is to provide a comprehensive solution for small to midsized businesses looking for amenities traditionally afforded to large organizations.
“The approach eases the administrative and fiduciary risk burden and adds value to their holistic benefits offering,” Sokolic said. “Importantly, Hub Retirement Select can serve as a sophisticated retirement option if an employer is in a state requiring a mandated retirement plan.”
Sokolic emphasized that the solution will be priced competitively compared with existing offerings in the small- and mid-market. As of the launch of the solution, Hub is partnering with a handful of select recordkeepers to power the solution, and Sokolic said additional partnerships are likely.
When utilizing Hub Retirement Select, clients gain access to Employee Retirement Income Security Act (ERISA) 3(38) investment management. Additionally, clients receive a quarterly monitoring report that includes tools and analytics design to make it easy to monitor and optimize their plan, along with an economic update to help them understand the bigger picture.
“We take responsibility for the quality of the investments and give clients regular updates,” Sokolic explained. “We expect Hub Retirement Select to be a highly competitive alternative option to state-mandated and voluntary retirement plans for employers.”
The idea here is that working with Hub will be easier—and potentially more cost effective when staff resources are taken into account—than creating the necessary payroll integrations to allow participation in a state-run option. As Sokolic observed, in the absence of a federal mandate, nearly a dozen U.S. states (California, Illinois, Oregon, Washington, New York, Vermont, Connecticut, New Jersey, Massachusetts and Maryland) and one city (Seattle) have already enacted mandated and voluntary retirement programs.
“We want to deliver the full value of Hub to this group of small businesses and start-ups, and Hub Retirement Select is a big step in that direction,” Sokolic said. “We have the complementary expertise and the technology and partnerships to make this work.”