Paychex is the Nation's Largest 401(k) Recordkeeper

Rhea-AI Summary

Paychex has been recognized as the largest 401(k) recordkeeper in the U.S. for the 11th consecutive year, managing over 90,000 plans according to PLANSPONSOR magazine's annual survey. In 2020, the company added 16,427 new plans, ranking second in this category. Paychex offers a range of user-friendly retirement solutions, including a Pooled Employer Plan (PEP) launched in January 2021, attracting over 5,000 clients. The firm emphasizes efficiency, fee transparency, and mobile accessibility to support clients in retirement planning.

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• Recognized as the largest 401(k) recordkeeper by number of plans for the 11th year.
• Added 16,427 new plans in 2020, ranking second for new plans.
• Features user-friendly tools enhancing retirement planning.
• Launched the Pooled Employer Plan (PEP), attracting over 5,000 clients since January 2021.

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• None.

ROCHESTER, N.Y., Aug 6, 2021 /PRNewswire/ -- For the eleventh consecutive year, Paychex, Inc., has earned distinction as the largest 401(k) recordkeeper by total number of 401(k) plans. The company serves more than 90,000 plans. The ranking was announced as part of the annual PLANSPONSOR magazine's annual Recordkeeping Survey, a national publication dedicated to the pension and retirement industry.

In addition to earning consecutive recognitions as the largest 401(k) recordkeeper by number of plans, Paychex was named the second leading provider by number of new plans added in 2020, with 16,427 new plans. Paychex was also recognized as the largest recordkeeper by total plans with less than $10 million in assets.

"Innovation is the cornerstone of our business and we work tirelessly to deliver user-friendly tools and intuitive technology that help our clients and their employees save for a dignified retirement," said Michael Majors, senior director, Retirement, Paychex. "The COVID-19 pandemic cast a new light on the importance of saving for retirement and created a renewed focus on how employers are helping their employees do so. We are uniquely positioned to deliver new retirement options that will help ensure a successful future post-pandemic for both employers and employees."

The company offers affordable 401(k) plans for any size business, with the following features:

• Full Paychex integration for increased efficiency– The ability to integrate retirement into the full suite of solutions from Paychex, including payroll, human resource services, insurance and more, through Paychex Flex® can help plan sponsors reduce administrative time and cost, improve reporting, and meet fiduciary obligations.
• Expanded participant accessibility and convenient investment management – With the ability to enroll in a plan in as few as four clicks, view, and change 401(k) options from any device, participants have greater plan access. Participants can also maximize the potential of their retirement savings through a host of tools, including savings calculators, automatic contribution increases, and more. Additionally, participants have access to personalized investment advice from third-party experts.  
• Fee transparency – Plan sponsors and participants benefit from a clear picture of the fees they pay. With a return of revenue feature, any revenue-sharing payments are returned to the participant accounts from which they were generated, ensuring fee equalization, share class neutrality, and fee transparency.
• Plan accessibility across devices – Paychex's mobile-first technology enables plan participants to view and manage their retirement plan from anywhere. Participants can easily access their account balance, set up loans, view loan information, manage investments, deferral amounts, and personal account information, and use calculators to ensure they are on track to achieve their retirement goals all from their mobile device.
• Investment flexibility and fiduciary solutions – Plan sponsors can match investment objectives with a diverse range of risk and return profiles, with no proprietary requirements.  Paychex provides plan sponsors solutions to select from thousands of investment choices, makes it simple with fixed menu options, or access to help managing investments from third party 3(38) and 3(21) investment services experts.
• Pooled Employer Plan option – Paychex launched the Paychex Pooled Employer Plan (PEP) in January 2021, giving business owners a simpler, more cost-effective plan option. Paychex Retirement LLC acts as both plan sponsor and plan administrator of the PEP, relieving employers of significant fiduciary and administrative burden. The PEP is especially well-suited for small to mid-sized businesses that may have been unable to offer a retirement plan previously due to the lack of cost-effective plan options or the time or resources needed to manage complex plan administration. PEPs also offer a more feature-rich alternative to the growing number of state-mandated retirement plan programs. Since its launch, the Paychex PEP has added more than 5,000 clients.

For more information, visit 401(k) and Retirement Services on Paychex.com. Financial services professionals seeking to offer flexible retirement plans to their clients can learn more at Financial Advisor Partnerships with Paychex.

Complete results of the 2021 PLANSPONSOR Recordkeeping Survey are available on PlanSponsor.com

About Paychex
Paychex, Inc. (NASDAQ: PAYX) is a leading provider of integrated human capital management solutions for human resources, payroll, benefits, and insurance services. By combining its innovative software-as-a-service technology and mobility platform with dedicated, personal service, Paychex empowers small- and medium-sized business owners to focus on the growth and management of their business. Backed by more than 50 years of industry expertise, Paychex serves more than 710,000 payroll clients as of May 31, 2021 across more than 100 locations in the U.S. and Europe and pays one out of every 12 American private sector employees. Learn more about Paychex by visiting paychex.com and stay connected on Twitter and LinkedIn.

Media Contacts

Emily DePerrior
Paychex, Inc.
(585) 387-6432
edeperrior@paychex.com

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SOURCE Paychex, Inc.

FAQ

What is the significance of Paychex being the largest 401(k) recordkeeper?

Being the largest 401(k) recordkeeper by the number of plans indicates Paychex's strong market position and customer trust in its services.

How many new plans did Paychex add in 2020?

Paychex added 16,427 new plans in 2020, ranking second in the industry for new plans.

What features does Paychex offer for retirement plans?

Paychex offers features like fee transparency, mobile accessibility, and integrated technology for efficient retirement plan management.

What is the Pooled Employer Plan launched by Paychex in 2021?

The Pooled Employer Plan (PEP) allows multiple employers to participate in a single retirement plan, simplifying administration and reducing costs.

How has the COVID-19 pandemic affected Paychex's retirement services?

The pandemic has heightened the focus on retirement savings, prompting Paychex to enhance its retirement solutions to better assist clients.