Private-Label Pricing for 401k Enginuity

Introducing 401k Enginuity - a true, low-cost "open architecture" 401k

401k Enginuity is licensed annually to Plan Providers for a fee based upon two components: the number of plans supported, and the number of eligible plan participants within these plans. There is also a one-time 401k Enginuity system setup fee that covers installation and customization to the Provider's specifications.

Be Competitive...

As a Plan Provider or financial advisory firm, 401k Enginuity enables you to be VERY competitive in the 401k marketplace, particularly within the small business 401k market. According to government statistics, nearly 80% of U.S. businesses with 100 or fewer employees do not offer a 401k plan, primarily due to the plans' costs.

The ASP Advantage...

401k Enginuity is run off-site as an ASP. ASP stands for Application Service Provider, and is essentially a third-party data processing business that both hosts and manages web-based software applications for companies that do not want to run the software themselves. With 401K Enginuity's ASP solution, you can offer the power and affordability of 401k Enginuity, branded as your own, and available to through your firm's website.

The advantages of 401k Enginuity distributed via ASP on behalf of the Plan Provider include:

401k Enginuity Pricing Specifics

401(k) Enginuity is a low-cost, open architecture 'end-to-end' 401(k) outsourcing platform and service geared to needs of Plan Providers, including TPAs, and financial advisors. 401(k) Enginuity includes:

I. One-Time Set-Up Fee Per Separate Plan Installed on the Plan Provider's Custom Platform*

II. Reoccurring Annual Fee Per Separate Plan Hosted on the Plan Provider's Custom Platform

*Running a custom website and plan platform for a Plan Provider, Pension Systems Corporation requires a minimum annual fee is $30,000 ($7,500 quarterly), which is off-set by the annual plan and annual participant fees paid to Pension Systems Corporation. This minimum annual fee is NOT an additional charge, but a dollar-for-dollar offset. This minimum annual charge can be met, for example, with as few as 30 plans with an average head-count of 20 participants per plan:

Setting up a new 401(k) plan on the Plan Provider's custom platform is economical and straight-forward. The one-time setup fee for takeover plans is higher than the setup for new plans, because of the complexities involved in converting an existing plan's historical data for inclusion in our database. Pension Systems Corporation has developed a number of easy to use software programs that simplify the data conversion process.

Plan Provider (TPA, Advisor, Payroll Service Provider, etc) pays a one-time website branding fee of $1000 to setup and brand a custom website for its plans. This branded website is linked to the Provider's existing website, so that sponsors and plan participants can login to the Provider's 401(k) directly from the Provider's website. The custom website we build for the Plan Provider is SSL encrypted and password-protected.

The Plan Provider's designated asset custodian (i.e. TD Ameritrade, Matrix, Schwab, etc) typically charges approximately $400-$500 a year for each separate plan on the Provider's platform. These fees are negotiable, and based upon the plan's size and holdings asset s. It is important to note that Pension Systems Corporation does not receive or retain any portion of these, or any other custody or asset-based fees paid by any source. All commissions and asset-based fees generated by the Provider's plans are either returned to the plans to reduce their ongoing costs, or paid-out directly to Provider. Pension Sytems Corporation will not retain for itself any asset-based fees. All fees generated from plan assets are the property of the Plan Provider, Plan Advisor, or Plan itself.

* This feature, Plan Provider Gateway, is optional, at an additional cost.