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NEWS - Vanguard to Outsource Some 403(b) Recordkeeping to Newport Group

 

August 8, 2017 – Vanguard has decided to outsource recordkeeping for certain 403(b) plans to The Newport Group.

According to Vanguard, the partnership with Newport Group involves small-market 403(b) Employee Retirement Income Security Act (ERISA) plans as well as non-ERISA plans.

“Vanguard has a history of working to provide 403(b) participants and plan sponsors with the tools and resources necessary to help them achieve success. By working with Newport Group on recordkeeping services, Vanguard is able to provide plan sponsors and participants with a variety of new and improved services/features,” the firm told PLANSPONSOR.

By working with Newport Group on recordkeeping services, Vanguard is able to provide plan sponsors and participants with Roth contributions, loans and an enhanced web experience. Participants will also gain access to Vanguard’s ultra-low-cost Admiral Shares. The Admiral Shares of Vanguard Total Stock Market Index Fund feature an expense ratio of 0.04% compared to the 0.15% of Investor Shares.

Vanguard adds that plan participants will continue to see transparent fees and low costs, including no loads, commissions, surrender fees, and no asset-based administrative fees. Clients will now pay a flat $5 monthly fee, which eliminates a per fund fee that was charged previously, as well as peace of mind knowing they aren’t charged when they take a distribution from their account.

For plan sponsors, benefits include improved recordkeeping and reporting, online plan management capabilities and enhanced client support.

Click to the external link below to review the entire article:

http://www.plansponsor.com/Vanguard-to-Outsource-Some-403b-Recordkeeping-to-Newport-Group/