Products October 25, 2018

Fidelity Tailors Financial Wellness to Each Individual

The solution uses new digital technology to help employees assess their individual financial wellness needs.

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Fidelity has unveiled a personalized financial wellness solution that uses new digital technology to help employees assess their individual financial wellness needs. Available through Fidelity’s NetBenefits employee benefits portal, it provides education and guidance on a broad range of financial topics at different career and life stages.

The solution leverages data and information on each employee to develop a personalized action plan. It covers 30 different areas, including employee benefits (workplace savings plans, company stock plans, charitable gift programs), budgeting and debt (student debt, mortgages, emergency savings, debt counseling), saving and investing (college savings, individual retirement accounts, annuities, brokerage accounts) and protection (long-term care, estate planning, identity protection, life insurance).

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Using Fidelity’s Money Checkup, employees can generate a personalized financial wellness score by answering questions about their background, lifestyle, savings, spending, financial goals, financial concerns and thoughts about their future.

The solution also connects employees with tools, information and products that can help them get started and take immediate action to address their top financial challenges. These solutions include online tools and calculators, webinars and informational articles as well as products from Fidelity and third-party providers.

“Financial wellness programs are an excellent way to help employees build confidence and improve their overall financial picture, as well as help employers address key workforce priorities, such as retaining top talent,” says Kevin Barry, president of Workplace Investing at Fidelity Investments. “According to Fidelity research, more than half of employees indicated they were more likely to stay with their employer if they had access to more financial help. However, since each person is unique and has a unique set of financial goals and challenges, Fidelity’s financial wellness program provides a personalized experience targeted to the needs of each employee.”

Compliance October 25, 2018

TPA Owners Indicted for Retirement Plan Theft

The co-owners of Vantage Benefits Administrators misappropriated funds from at least 1,000 plan participants in at least 20 employers’ retirement plans, prosecutors say.

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A federal grand jury indicted a Red Oak, Texas, couple who allegedly embezzled $14.5 million from retirement plans they managed, U.S. Attorney for the Northern District of Texas Erin Nealy Cox announced.

Jeffrey Richie, 53, and Wendy Richie, 58, co-owners of Vantage Benefits Administrators, were charged with conspiracy, theft from an employee benefit plan, wire fraud and aggravated identify theft.

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According to the indictment, Vantage served as third party administrator for dozens of retirement funds, including several 401(k)s. With her husband’s knowledge, Ms. Richie—posing as various beneficiaries—allegedly submitted fraudulent distribution requests to the retirement fund custodian, Matrix Trust Co.

Instead of depositing the money into beneficiaries’ accounts, however, she transferred it into Vantage’s operating account. The couple allegedly used those funds to pay Vantage payroll and other operating expenses, as well as personal expenses, including mortgage and escrow payments, farming equipment and home décor.

The Richies misappropriated funds from at least 1,000 plan participants in at least 20 employers’ retirement plans, prosecutors say. A lawsuit filed by MBA Engineering on behalf of its 401(k) and cash balance plans also accuses Vantage Benefits, MBA’s TPA and recordkeeper, of stealing money from approximately 20 other retirement plans.

The couple did not only allegedly steal money from 401(k) plans. Two 403(b) plan participants filed a lawsuit on behalf of themselves and other similarly situated 403(b) plan participants against Matrix Trust Company for making several transfers to an unauthorized account held by Vantage Benefits Administrators.

If convicted on all counts, they face up to 81 years in federal prison.

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