Products June 15, 2020

PAi Adds Principal Guaranteed Option to 401(k) Platform

The enhancement to its CoPilot service for small and startup plans also includes investment management from Wilshire Associates.

Reported by

Rebecca Moore

PAi, a 401(k) plan administrator and recordkeeper, has teamed with Principal Global Investors to launch an enhancement to its CoPilot service.

The new CoPilot 401(k) offering incorporates the investment fiduciary services of PAi Trust Company Inc., investment management from Wilshire Associates, and investment strategies from Principal. PAi Trust hired Wilshire to select and approve the investment options offered in this new CoPilot 401(k) service, which has both fee-based and commission-based lineups.

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A new investment option—the Principal Guaranteed Option—is geared to minimize market risk by leveraging fixed income investment options that provide a guaranteed crediting rate. “The need for participants to have comfort in their capital preservation option is a significant concern and the selection of our Principal Guaranteed Option helps participants navigate volatile markets with a stronger level of predictability and stability addressed,” says Rob Logan, managing director of investment only for Principal Global Investors.

“With the recent market volatility, it’s more important than ever for workers to know their 401(k) plan service provider can accommodate specific needs and preferences,” says Michael P. Kiley, founder and CEO of PAi. “By adding Principal to our lineup, PAi can provide savers and financial advisers with additional retirement solutions.”

Pai’s CoPilot service provides planning tools, systematic alerts and reminders to help keep participants on track to meet their retirement savings goals. Its Years of Retirement calculation allows savers to see how many years they can afford to be retired, while built-in messaging provides participation nudges along the way.

CoPilot provides online setup and enrollment, plus it can integrate with many payroll providers, human resources information systems (HRIS) and human capital management (HCM) systems. With integration, data is securely shared between systems, saving plan sponsors time and increasing data accuracy.