Pershing Launches Retirement Plan Network to Help Advisors Establish and Grow Business in the $6.6 Trillion Defined Contribution Market

January 20, 2015

Centralized hub will provide advisors with resources to help drive better retirement outcomes for retirement plan sponsors and plan participants

JERSEY CITY, N.J., - Pershing LLC, a BNY Mellon company, today announced the rollout of its Retirement Plan Network, a new solution to help broker-dealers, investment advisors and registered investment advisors (RIAs) grow their retirement plan business. Pershing’s Retirement Plan Network is an open-architecture platform that allows advisors to connect to independent recordkeepers, hold assets in custody, and to leverage an integrated suite of investment products, retirement plan tools and practice management solutions. Pershing’s Retirement Plan Network will be rolled out through the first quarter of 2015.

“As one of the largest custodians of individual retirement account (IRA) assetsⁱ, the retirement market is important to Pershing and our clients,” said Rob Cirrotti, head of retirement solutions at Pershing. “The defined contribution system, however, continues to be the primary retirement savings vehicle for Americans and advisors are playing an increasingly important role in driving better retirement outcomes. Pershing’s Retirement Plan Network is a natural extension of the solutions we offer to address the needs of the retirement market.”

The retirement plan market continues to grow, with defined contribution (DC) assets expected to increase 5 to 6 percent per year through 2019.ⁱⁱ As of the third quarter of 2014, Americans held $6.6 trillion in DC retirement plans, including 401(k) assets.ⁱⁱⁱ Additionally, DC plan rollovers are fueling the growth of IRA assets, which are expected to exceed $11.5 trillion by the end of the decade.^iv Despite the increase of 401(k) plans and other DC assets, many American households are not adequately prepared for retirement, according to data from the Federal Reserve.^v

“The growth of DC plans and IRAs make the retirement market an attractive space for advisors and presents them with an opportunity to help meet plan sponsors’ need for better guidance in preparing their plan participants for retirement,” said Cirrotti. “In our conversations with clients, we recognized their desire for assistance with their retirement plan business, so we developed the Retirement Plan Network in response."

In addition to helping clients establish or expand their retirement plan business, Pershing’s Retirement Plan Network is designed to help advisors address the need for greater transparency and oversight of their retirement business. What differentiates Pershing’s solution in the market is that it is a conflict-free custody solution integrated into a single platform on which advisors can serve the needs of retirement plan sponsors and individual investors.

Through the Retirement Plan Network, advisors have access to a host of resources that will enhance their service for retirement plans:

Retirement Plan Network will enable advisors to access and leverage deep integration of independent recordkeepers through NetX360®, Pershing’s technology platform. Currently, recordkeepers include Allen, Gibbs & Houlik, L.C.; Aspire Financial Service; Benefit Consultants Group; DailyAccess Corporation; July Business Services; and Sentinel Benefits & Financial Group. The network will expand extensively over time to include additional regional and national recordkeepers.
An open-architecture investment platform that will have a highly integrated management capability for advisors to manage investment models or access third-party asset managers. Pershing’s Retirement Plan Network’s menu of investment choices features mutual funds, stable value funds and exchange-traded funds through managed models.
Through NetX360, advisors will have a single point of access for both individual and retirement plan businesses that will offer a range of support, including practice management and an integrated set of retirement plan tools and solutions that will enable advisors to create proposals, view plan investments, conduct investment reviews, facilitate IRA rollovers, select recordkeepers and access plan sponsor and participant education materials.

"As a leading service provider to advisors, we are well positioned to support the large number of advisors who sell and service retirement plans,” said Cirrotti. “We are excited to expand our solutions to help them efficiently grow their retirement plan practice and drive better retirement outcomes for plan sponsors and their plan participants."

Learn more about Pershing’s Retirement Plan Network [PDF].

ⁱ Cerulli Associates, Retirement Markets 2014: Sizing Opportunities in Private and Public Retirement Plans

ⁱⁱⁱ Investment Company Institute, Retirement Assets Total $24.2 Trillion in Third Quarter 2014

^iv Cerulli Associates, Retirement Markets 2014: Sizing Opportunities in Private and Public Retirement Plans

^v Board of Governors of the Federal Reserve, Report on the Economic Well-being of US Households in 2013

About BNY Mellon's Pershing

BNY Mellon’s Pershing and its affiliates provide advisors, broker-dealers, family offices, hedge fund and ’40 Act fund managers, registered investment advisor firms and wealth managers with a broad suite of global financial business solutions. Many of the world’s most sophisticated and successful financial services firms rely on Pershing for clearing and custody, investment and retirement solutions, technology, enterprise data management, trading services, prime brokerage, managed account technology and operations and business consulting. Pershing helps clients improve profitability and drive growth, create capacity and efficiency, attract and retain talent, and manage risk and regulation. With a network of offices worldwide, Pershing provides business-to-business solutions to clients representing more than seven million investor accounts globally. Pershing LLC (member FINRA, NYSE, SIPC) is a BNY Mellon company. Professionally advised managed accounts are offered through its affiliate, Lockwood Advisors, Inc., which is an investment adviser registered in the United States under the Investment Advisers Act of 1940. Additional information is available on pershing.com, or follow us on Twitter @Pershing.

About BNY Mellon

BNY Mellon is a global investments company dedicated to helping its clients manage and service their financial assets throughout the investment lifecycle. Whether providing financial services for institutions, corporations or individual investors, BNY Mellon delivers informed investment management and investment services in 35 countries. As of Dec. 31, 2019, BNY Mellon had $37.1 trillion in assets under custody and/or administration, and $1.9 trillion in assets under management. BNY Mellon can act as a single point of contact for clients looking to create, trade, hold, manage, service, distribute or restructure investments. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation (NYSE: BK). Additional information is available on www.bnymellon.com. Follow us on Twitter @BNYMellon or visit our newsroom at www.bnymellon.com/newsroom for the latest company news.