As part of its commitment to retirement planning advisors, ADP® today announced it has introduced IPS Zero, an investment platform designed to appeal to advisors who employ a fee-for-service structure with their retirement plan clients and plan sponsors who want simplified fees. With IPS Zero, advisors and their clients can benefit from greater transparency and lower investment expenses when administering their plans.
The investment options offered under the IPS Zero platform pay no 12b-1, shareholder servicing fees or revenue sharing compensation to ADP, Inc. (or its affiliates), which grants plan sponsors and participants the benefit of paying significantly lower investment fees. In addition, since ADP, Inc. is not an investment manager, it does not offer or require the use of any proprietary investment vehicles, which ensures there are no conflicts of interest or impediments to creating an investment menu best suited to each client’s needs.
“ADP Retirement Services is committed to helping retirement planning advisors and plan sponsors generate the best possible savings outcomes for their participants. That’s why we’ve created IPS Zero,” said Chris Augelli, vice president of product marketing and business development at ADP Retirement Services. “IPS Zero is designed for plan sponsors who believe simplified fees and complete transparency are in the best interests of their plan and their employees.”
“We’ve been waiting for a product like IPS Zero because now all fee details are wide open for our clients to see and understand,” said Matt D. Fitch, a retirement plan consultant with Minnesota-based Feltl and Company. “To have a retirement investment platform linked with payroll is a huge advantage because our clients understand exactly what they are buying from us and they know exactly what they are paying for.”
Bryan Strong, Fitch’s partner at Feltl and Company, added: “This kind of transparency helps build trust, and being trusted helps us retain clients.”
In addition to simplified fees, the IPS Zero platform offers investment screening and ongoing monitoring of the platform’s investment options by ADP’s team of investment professionals; a broad selection of investment options from over 30 leading asset managers; and access to support tools to help advisors and plan sponsors mitigate fiduciary liability. Investment options are screened and monitored based on the ADP IPS Zero platform Investment Policy Statement (IPS). Only funds that meet the qualitative and quantitative requirements of the IPS are considered for the platform.
“Our goal is to make retirement plan administration and participation easy and accessible, and simplified fees and transparency play an important role in that process,” Augelli added.
With more than $11 billion in revenues and more than 60 years of experience, ADP® (adp.com) serves approximately 620,000 clients in more than 125 countries. As one of the world's largest providers of business outsourcing and human capital management solutions, ADP offers a wide range of human resource, payroll, talent management, tax and benefits administration solutions from a single source, and helps clients comply with regulatory and legislative changes, such as the Affordable Care Act (ACA). ADP's easy-to-use solutions for employers provide superior value to companies of all types and sizes. ADP is also a leading provider of integrated computing solutions to auto, truck, motorcycle, marine, recreational vehicle, and heavy equipment dealers throughout the world.