Schwab Retirement Unit Wants to Expand Deferred Comp Services
The new capabilities will be launched in partnership with Newport, which has decades of experience in the deferred comp arena.
Schwab Retirement Plan Services announced two partnerships Wednesday that should let the firm to deliver new services to pensions plans and clients in deferred compensation arrangements.
Schwab RPS will work with Conduent Incorporated in the defined benefit area and Newport, an Ascensus company, in the deferred compensation area, according to a press release. The Schwab unit will continue to serve as the plan provider, with support from Conduent and Newport.
Ben Sheppard, a managing director at Schwab RPS, says the firm has served pension and deferred compensation clients previously, but its primary focus has been on 401(k)s. However, recent growth in the retirement market has highlighted new opportunities to serve the broader needs of clients, he suggests.
According to Schwab RPS, executive-level employees often have more complex financial situations and may require additional options to help them meet their retirement goals. Nonqualified deferred compensation plans may play an integral part in a total compensation package designed to attract and retain these key employees.
Sheppard says Schwab RPS will begin systems work with both firms this year and offer enhanced capabilities to new clients in 2024. Current pension and deferred compensation clients will migrate to the enhanced offering starting next year, according to the release.
As part of the collaboration, professionals from Conduent and Newport will be available to consult alongside the Schwab RPS service team to help clients set and achieve their goals.
Schwab RPS expects the partnerships to allow it to deliver a set of expanded capabilities to pension clients, including more powerful data analytics, compliance and reporting tools, expert support for data remediation, audit services and special initiatives, such as early retirement windows and mergers and acquisitions.
On the deferred compensation side, Schwab RPS will offer “comprehensive end-to-end solutions for non-qualified plan administration with strong risk and Section 409A compliance processes.”
It will further provide plan design, legal, tax and accounting resources, as well as detailed financial reporting and monthly FICA reporting for employer contributions, among other services.
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