Merrill Outsources Small Plan Recordkeeping

October 24, 2000 ( - Merrill Lynch will outsource the recordkeeping of its small-market defined contribution plans (those with less than $3 million in assets) to BISYS, effective November 15.

The deal impacts some 5,000 plans, and involves the transfer of “facilities and related associates”.

Merrill Lynch will continue to provide investment services, such as asset management and investment processing, as well as sales and marketing functions.

Through a joint-product initiative, BISYS will provide service support for Merrill Lynch’s 15,900 financial consultants targeting sales of new 401(k) plans in the sub-$3 million segment. 

This model is consistent with the current servicing approach for about 81% of BISYS’ current business.

– Nevin Adams