Deals and People June 24, 2015

HANYS Benefit Services Expands NYC Presence

HANYS Benefits added a team of strategic business leaders headquartered on Long Island.
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To meet client demand in the New York City area, HANYS Benefit Services (HBS) expanded operations to a new location in Melville, New York.

The firm provides advisory services, retirement plan offerings and other employee benefits products.

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HBS says the new location will be staffed by a team of executives, led by Peter Margiotta in the role of vice president, client relationship development. The new office is tasked with deepening client services and access to senior executives for the New York City area.

Peter Margiotta has more than 25 years of experience in the retirement benefit planning industry, HBS notes, specializing in retirement plans for health care and not-for-profit organizations. Before HBS, he held positions including national sales director at Great-West, where he was responsible for the marketing of products and overseeing the transition and integration of new clients.  He began his career with Mutual of New York/Diversified Investment Advisors.

HBS is headquartered near Albany, with offices in Cranford, New Jersey, Rochester, Tonawanda, and now Melville, New York.

Products June 23, 2015

Firm Rolls Out Simplified 401(k) Solution

ForUsAll has created a simple and inexpensive 401(k) product for small businesses with 3(16) and 3(38) fiduciary services.
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A new 401(k) solution from ForUsAll offers 3(16) and a 3(38) fiduciary services, allowing the firm to do most of the administrative work for the plan, including filling in the Form 5500, which it reviews, signs and submits for the owner, according to David Ramirez, chief investment officer for ForUsAll. The firm’s 401(k) plugs into most existing payroll providers, Ramirez says, letting plan sponsors delegate day-to-day responsibility for plan administration.

ForUsAll auto-enrolls eligible employees at a rate of 6%, which increases automatically 1% each year until the plan participant is saving at 15%. Plan participants are invested in age-appropriate target-date funds (TDFs). “As in most auto design 401(k)s, they can opt out or change the default,” Ramirez tells PLANSPONSOR, “but it is a best-in-class plan design.”

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Current savings rates of ForUsAll participants average about 10%, according to Ramirez, who declined to say how many participants are enrolled or the number of plans using the solution.

A 401(k) can run efficiently without an army of experts or high fees, Ramirez contends, noting that automated features make the product less expensive, which also means more money for employees. “Promising early results have been consistent in companies ranging from high-tech start-ups, to manufacturing companies, to hair salons,” Ramirez says.

The solution’s auto adviser, DAVE, is not an acronym but is named for the co-founder, Dave Boudreau; Ramirez explains plan participants can interact with DAVE for explanations of plan options and help in customizing their 401(k). “It takes about two or three minutes on the phone or on their computer,” he says.

Features include payroll integration and full-service plan administration. ForUsAll links with each employer’s cloud-based payroll system to deduct 401(k) contributions automatically, and add new employees when they become eligible. The firm’s automated system handles plan administration, including signing and submitting all retirement-related government forms. Employers have online access to a plan dashboard that provides plan status at a glance and the “Fiduciary Vault,” which organizes and secures critical plan documents.

The monthly cost for a small employer is $94, which covers the first 10 employees. At 10 to 40 employees, the price rises by $5 per employee per month, and the fee for more than 40 employees is $3 per employee per month. Plan sponsors typically pay the cost of the plan, Ramirez says. All-in plan fees for the participants at .55% cover the costs of the mutual fund, the adviser and the custodian. The plan does not charge any setup fees.

More information is on ForUsAll’s website.

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