Envestnet Selected as Investment Manager for Sallus Retirement’s Pooled Employer Plan
Envestnet Retirement Solutions, a subsidiary of Envestnet, Inc., announces that it has been chosen by Sallus Retirement LLC (Sallus Retirement) to serve as investment manager for the Sallus Retirement’s pooled employer 401(k) plan for small business owners and the financial advisors that service them.
Sallus Retirement, built in response to the 60 million American workers who today are without a workplace retirement plan, is one of the first fully independent and bespoke pooled plan provider solutions in the market. The Sallus Retirement solution is a digital, comprehensive, and bundled Pooled Employer Plan (PEP) offering designed specifically for the 5 million small businesses that either, until now, couldn’t afford to sponsor a retirement plan for employees, or wish to reduce the risk of becoming a retirement plan fiduciary subject to oversight by the U.S. Department of Labor and Internal Revenue Service.
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Envestnet will leverage its retirement plan experience in asset allocation, portfolio construction, and manager research to manage the fund portfolios in Sallus Retirement’s PEP 401(k) plan.
“We continue to expand the asset management and fiduciary capabilities available through the Envestnet financial wellness ecosystem,” said Dana D’Auria, CFA, Co-Chief Investment Officer of Envestnet. “Working with Sallus Retirement gives us the opportunity to optimize investments and lower costs in comprehensive 401(k) solutions for small businesses and the independent financial advisors who work with them—potentially improving retirement outcomes for some of the estimated 60 million Americans who are not currently enrolled in a workplace retirement plan. We hope all of our distribution partners can take advantage of this new retirement plan solution.”
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Under the Setting Every Community Up for Retirement Enhancement (SECURE) Act, employers in different industries are allowed to pool their resources and participate in a single 401(k) plan sponsored by a Pooled Plan Provider (PPP) registered with the Department of Labor. Unlike single-employer plans, where the employer/sponsor is the named fiduciary, a PEP’s lead fiduciary is the professional PPP, which is responsible for administrative duties as well as selecting, monitoring, and overseeing the plan’s service providers. PEPs were created to help small businesses offer employees the chance to save for retirement, while lowering the costs and risks associated with being plan sponsors.
“By selecting Envestnet to serve as investment manager to select and monitor the funds in our PEP, we provide small business owners with the comfort that a team of independent fiduciaries are supporting them and their financial advisor,” said Lisa Kottler, Chief Growth Officer at Sallus Retirement. “Envestnet’s strong investment knowledge and established due diligence processes for selecting plan investments demonstrate our commitment to delivering a high-quality program to the underserved small employer community.”
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