Steve Finnegan, President and CEO
This trend underscores the urgent need for change. Employers hold the power to mitigate this crisis by offering robust retirement plans to their workforce. However, gauging the regulatory intricacies and administrative tasks associated with these plans can be challenging. In this complicated journey of retirement planning, The Finway Group can be a perfect consort for companies of all sizes. With a team of 25 retirement plan experts, the company serves more than 800 plans nationally, representing over $1.75 billion in assets.
A Reliable 3(16) Plan and Third Party Administrator
The Finway Group is an ERISA 3(16) Plan Administrator, as defined by the Department of Labor’s Employee Retirement Income Security Act of 1974—offering fullservice retirement plan administration and annual IRS reporting.
It helps in designing, drafting and filing required plan documents, managing annual plan administration and evaluating and testing employer contributions. It performs required compliance testing, recommends remedies and generates summary reports.
To effectively serve clients, The Finway Group implements a “heavy 3(16) process.” The goal is to monitor and track all operational responsibilities for clients, including date-stamping notices and tracking mailings. It takes a proactive, hands-on approach to ensure meticulous management of plans, providing peace of mind to the employer. This commitment to excellence is reflected in their impressive 99.1 percent client retention rate over the past seven years.
The Plan Fiduciary
When employers set up a 401(k) plan, their primary goal is to provide a retirement savings option for their employees. During this time, many lack a clear understanding of the administrative requirements involved. ERISA clearly dictates how 401(k) plans must be designed and administered. The complexities of the law can be overwhelming for employers, with numerous tasks such as processing, documentation, monitoring, verification and benchmarking.
Unlike other players that offer supplemental support services or limited fiduciary activities, The Finway Group acts as a comprehensive Plan Fiduciary services provider. It enables plan sponsors to delegate the risk, responsibility and liability of their fiduciary role to its expert team.
“By partnering with us, much of the administrative burden can be shifted away from the employer. This allows them to focus on their core business operations without the stress of managing the day-to-day intricacies of their retirement plan,” says Steve Finnegan, president and CEO. “From maintaining documentation to ensuring compliance with Department of Labor and IRS regulations, we ensure that all necessary tasks are carefully and consistently monitored and executed.”
By partnering with us, much of the administrative burden can be shifted away from the employer. This allows them to focus on their core business operations without the stress of managing the day-to-day intricacies of their retirement plan
Venturing into a New Segment
The introduction of SECURE Act 1.0 created an excellent opportunity for The Finway Group to expand its services and offer Pooled Employer Plan (PEP) solutions to plan sponsors. What motivated the company to enter this field is the understanding that many plan sponsors face challenges in managing the day-today operations of their 401(k) plans.
Small business owners can now have a viable 401(k) alternative while minimizing their struggle to compete for talent against large organizations with comprehensive benefits packages. Also, as a third-party pooled plan provider (PPP), it reduces the fiduciary risk to plan sponsors.
“Our focus on PEPs yielded remarkable results, with 77 percent of our new business stemming from this sector last year. Client volume surged by nearly 300 percent due to our success in the PEP realm,” says Finnegan.
A Sound Onboarding Process
The Finway Group’s primary focus is on optimizing the onboarding process. Its dedicated team handles onboarding and documentation, collaborating with recordkeepers. As a nonproducing TPA, the company works in liaison with advisors instead of competing with them. It minimizes apprehensions associated with transitioning plans into its service model, when incorporating 3(16) or PEPs.
The foundation of The Finway Group’s client engagement strategy is consistent support and clear communication. Its relationship manager works as a single point of contact, addressing participant queries, plan sponsor concerns, payroll issues, loan distributions and compliance matters.
“Our call center handles participant and plan sponsor inquiries, effectively reducing the burden on recordkeepers by resolving approximately 70 percent of issues internally. We track eligibilities and mail out necessary notices such as SPDs, fee disclosures, and plan highlights. All communication from recordkeepers is centralized. This is vital in simplifying the process for HR departments and alleviating inbox clutter,” says Finnegan.
Impressive Technology Capabilities
Another key differentiator for The Finway Group is its technology capabilities. Leveraging secure portals within PensionPro network, it enables the confidential transfer of data electronically. The company also relies on Ft. Williams, a modern, cloud-based employee benefits and pension software provider, to streamline Form 5500 submission. Measures to safeguard data, mitigate cyber risks and ensure privacy of clients’ information are also in place.
The technological excellence is complemented by a capable team. The compliance team, for instance, holds an average of 20 years of experience per administrator. This gives the company authority in ERISA regulations, enabling it to manage complex retirement plans, including MEPs and PEPs, as well as adeptly navigate issues like coverage testing, cross-testing and control group analysis.
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Our call center handles participant and plan sponsor inquiries, effectively reducing the burden on recordkeepers by resolving approximately 70 percent of issues internally. We track eligibilities and mail out necessary notices such as SPDs, fee disclosures, and plan highlights. All communication from recordkeepers is centralized
Let’s Look Ahead
The company is looking forward to the PEP sector, which continues to witness significant growth and expansion within the retirement planning segment. Large broker-dealers and regional RIA firms are expecting a substantial portion of the market to transition to PEPs within the next five years. This has opened up new windows of expansion for The Finway Group.
Committed to organic growth, the company is forging partnerships with recordkeepers, advisory firms and diverse distribution channels ranging from banks and credit unions to benefit firms. This strategic approach ensures a broader market presence and facilitates access to a wider client base.
While The Finway Group’s primary focus remains on the 401(k) space, it also aims to capitalize on growth opportunities in the 403(b) sector as well.
“Our objective is to alleviate the administrative burdens and anxieties faced by plan administrators, leaving them free to focus on core responsibilities,” says Finnegan.
