Greater Akron Chamber launches 401K open to Stow members
BALTIMORE – February 25, 2021
Greater Akron Chamber Launches Multiple Employer 401(k) Plan,
Selects Transamerica, CAPTRUST and Rea & Associates as Service Providers
New benefit offers Northeast Ohio businesses a retirement plan solution
to attract and retain employees.
Transamerica today announced that the company was chosen to be the retirement plan provider for a Multiple Employer 401k Plan created by the Greater Akron Chamber. This new offering allows more than 1,700 member companies to offer retirement plan benefits to their employees and still be able to focus on their own business growth.
“The Greater Akron Chamber is excited to announce the availability of this new retirement plan program for our members. We have been working on developing this program since new legislation was put in place to allow it. The multiple employer retirement benefit program will help small and mid-sized companies improve what they can do to support the financial well-being of their employees,” said Steve Millard, President & CEO of the Greater Akron Chamber. “Not only does this benefit plan give smaller companies the chance to put a retirement benefit in place, but it also delivers costs, service and support that could typically only be offered by really big companies.”
The Greater Akron Chamber 401(k) Retirement Plan is likely to appeal to small and mid-sized businesses that either do not currently offer a retirement plan, or who have an existing plan and are looking to reduce cost and complexity, outsource liability and improve administrative efficiencies. Transamerica will serve as the plan’s recordkeeper, CAPTRUST will be the 3(38) investment manager and Rea & Associates will handle TPA and 3(16) fiduciary responsibilities.
“The Greater Akron Chamber understands the need for Northeast Ohio to attract business owners and talent. Many companies do not offer retirement plans because of costs and administrative complexities. Those companies who do offer 401(k) plans are often too busy to benchmark and service their plans on an on-going basis. Transamerica congratulates the Chamber for their forward-thinking approach to addressing both issues, and we are very thankful to be part of the solution,” said Tim Lastivka, Division Vice President for Transamerica.
“I am excited about the Greater Akron Chamber MEP solution. We are pleased that CAPTRUST is providing fiduciary oversight on this initiative which brings large plan benefits to small and mid-sized plans and their hard-working employees,” said Steve Wilt, Principal and Financial Advisor at CAPTRUST Akron.
While a Multiple Employer Plan (MEP) arrangement offers adopting employers the ability to delegate fiduciary functions to the MEP provider, employers should be aware that they still retain the fiduciary responsibility for selecting and monitoring the MEP provider. Because a MEP is treated as a single plan, a violation of the qualification rules by an adopting employer could affect the qualified status of the plan as a whole. In order to be treated as a single plan under the qualification rules, the adopting employers of a MEP must share a commonality—a connection among the adopting employers such as a trade or professional organization. Before adopting any plan, sponsors should carefully consider all of the benefits, risks, and costs associated with a plan. Retirement plans are complex, and the federal and state laws or regulations on which they are based vary for each type of plan and are subject to change. Plan sponsors and administrators may wish to seek the advice of legal counsel or a tax professional to address their specific situations.
About the Greater Akron Chamber
The mission of the Greater Akron Chamber is to drive economic growth and prosperity for Greater Akron by supporting the success of the business community and acting as a convener of stakeholders on key issues facing employers in Summit, Portage and Medina counties. In support of this mission, the Greater Akron Chamber is committed to bringing distinctive products, services, and resources to support its members, from solopreneurs to the region’s largest employers across all industries and segments of the Greater Akron economy. For more than 110 years, the Chamber has been a driving force for the needs of business and the community in support of the continual improvement of Greater Akron’s economy.
With a history that dates back more than 100 years, Transamerica is recognized as a leading provider of life insurance, retirement, and investment solutions, serving millions of customers throughout the United States. Recognizing the necessity of health and wellness during peak working life, Transamerica’s dedicated professionals work to help people take the steps necessary to live better today so they can worry less about tomorrow. Transamerica serves nearly every customer segment, providing a broad range of quality life insurance and investment products, individual and group pension plans, as well as asset management services. In 2020, Transamerica fulfilled its promises to customers, paying more than $49 billion in insurance, retirement, and annuity claims and benefits, including return of annuity premiums paid by the customer. Transamerica’s corporate headquarters is located in Baltimore, Maryland, with other major operations in Cedar Rapids, Iowa and Denver, Colorado. Transamerica is part of the Aegon group of companies. Based in the Netherlands, Aegon is one of the world’s largest providers of life insurance, pension solutions and asset management products, operating in more than 20 markets worldwide. For the full year of 2020, Aegon managed over $1.1 trillion in revenue generating investments. Transamerica is not affiliated with CAPTRUST or Rea & Associates. For more information, please visit www.transamerica.com.
Founded in 1997 in Raleigh, North Carolina, CAPTRUST is an independent registered investment advisor with a mission to enrich the lives of its clients, colleagues, and communities through sound financial advice, integrity, and a commitment to service beyond expectation. The firm provides investment advisory, investment management, and planning services to thousands of private clients and institutional investors such as retirement plan fiduciaries, endowments, foundations, and religious entities. With more than 800 employees across 49 locations nationwide, CAPTRUST oversees more than $60 billion in assets under management and $448 billion in assets under advisement (as of December 31, 2020).
About Rea & Associates
Rea & Associates, Inc. is a regional CPA and consulting firm with more than 350 accounting and business consulting professionals committed to serving clients throughout Ohio. Since 1938, Rea has provided a wide range of accounting services to businesses, individuals with means and those with dreams. Today, the firm is the go-to resource for thousands of businesses and individuals nationwide. Rea serves clients in the construction & real estate, government, healthcare, manufacturing, oil & gas, and not-for-profit industries – as well as family businesses – through innovative accounting, audit, tax, and consulting services. For more information about Rea & Associates, please call 330.339.6651 or visit www.reacpa.com.