As the retirement and financial industry shifts to comply with the evolving world of fiduciary regulation, OneAmerica announced the debut of revenue accounts to help ease the burden on both plan sponsors and financial advisers.
OneAmerica revenue accounts offer a shift from commission-based payments to fee-based payments for financial advisers. Created at the plan level, revenue accounts can be used to pay an advisor’s fee, without requiring deductions from participants’ accounts.
There is no plan minimum, and any plan size or type can use a revenue account. A revenue account with OneAmerica will not require any changes to an existing plan’s pricing or disturbance in the adviser’s payment schedule. The way a commission is calculated is preserved, and commission amounts are credited to the plan’s revenue account then withdrawn that day and paid to the adviser as a fee.
“We believe revenue accounts will help our distribution partners by providing a fee-based compensation versus a commission for the great work they do, particularly on behalf of the small and mid-size plan market, where plan sponsors often need help in their efforts to ensure their participants can retire comfortably,” says Terry Burns, assistant vice president of Products and Investments for OneAmerica Retirement Services.