BenefitGuard Reaches 97 Percent Retention with Disruptive 401k Model Validated by New Congressional Initiative

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BenefitGuard solves problem by offering a conflict-free, low-cost plan, with outsourced fiduciary services

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BenefitGuard, founded in 2010 with the intent of fixing a broken 401(k) model, works diligently to improve plan administration and access to retirement plans for small business. In sponsoring a retirement plan, 95% of employers have historically served as plan fiduciaries without understanding the risk and work they incur. BenefitGuard solves this problem by offering a conflict-free, low-cost plan, with outsourced fiduciary services. Clients and Congress are validating BenefitGuard’s pioneering direction.

BenefitGuard uses a unique structure, shaped by the DOL’s 2012 Advisory Opinion, and a custom plan document, approved by the IRS, to pool the buying power and fiduciary roles for employers giving them access to institutional pricing and services. Recent Senate Finance Committee initiatives, which introduce the PEP and PPP, further validate BenefitGuard’s disruptive approach to 401(k) plans.

In its brief history, BenefitGuard has transformed $1.8 million in investor venture funds into a rapid-growth small business solution working with trusted financial advisors to serve a $600 billion SMB market. With only 28% of such business offering retirement plans, the demand for low-cost, high-value benefit solutions remains high into the foreseeable future. Despite being relatively young, BenefitGuard is already profitable while other new-model competitors remain ‘in the red’.

“Our clients give us high marks for transforming the way low-cost 401(k) plans are administered. These new moves in Congress echo our client’s satisfaction with our model,” states Matt Bradley, CEO of BenefitGuard. “Providing a low-cost plan would be useless if it meant less service or more work for the employer, as is currently the case with most low-cost providers. We go above and beyond by legally committing to act in participants’ best interests and accepting responsibility for the plan as fiduciaries. The result is a 97% client retention rate, a dramatic increase over industry standards.”

Kimberly Knight, CFO of Tige Boats, explains, “Even though we didn’t think our legacy plan was broken, we wanted to see what BenefitGuard could do for us. The improvements have been unbelievable. We now have a less costly plan with better benefits for our employees and easier administration for our company.”

BenefitGuard has succeeded in developing partnerships with organizations that share the company’s vision to improve small business retirement plans including HealthEquity, Sage Payroll, Dimensional Fund Advisors, TD Ameritrade, BlueStar Retirement Services, and financial advisory firms across the country

About BenefitGuard:
BenefitGuard, LLC offers a low-cost 401(k) solution for small to mid-size businesses. BenefitGuard uniquely appoints professional fiduciaries to sign and act in administrative and investment fiduciary roles to dramatically reduce fees for employees and fiduciary risk and work for employers. Through a network of best-in-class partners, BenefitGuard provides cloud-based recordkeeping, payroll-integration, third party administration, custodial, advisory, and full fiduciary services. 401(k) plans are sold directly to employers and by financial advisors, payroll providers, HSA providers, benefits brokers, and other professional service firms. BenefitGuard was founded in 2010 and is headquartered in Orem, Utah.

Media Contact:
John Pilmer, PilmerPR

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