Breaking Down the Barriers to Offering 401(k) Plans on a Wide Scale

A secure retirement is something every employee deserves and every business owner wants to offer, but the reality is that it’s often too costly and complex for small businesses to manage and administer 401(k) plans.

So for HR service providers, the ability to offer and manage a cost-effective 401(k) plan to small business clients is a real selling point. In fact, many of our customers report significantly higher client retention rates when small businesses adopt 401(k) plans.

There’s no doubt about it — HR service providers who offer quality, easy to use 401(k) plans absolutely have a leg up in competitive situations, but many hesitate because they find that it requires a full-time employee or more to manually manage plan data and employee contributions.

Today, we’re thrilled to announce a first-of-its kind integration between the PrismHR platform and Slavic401k that reduces the cost and complexity of offering 401(k) plans. Visit the Slavic401k Marketplace page.

PrismHR has been offering terrific 401(k) plans through Slavic401k for years. Slavic401k is well known in the industry and is one of Fidelity’s fastest growing record keepers, with the HR service provider serving as the plan sponsor, Slavic401k acting as the back office and Fidelity as the custodian. PrismHR’s largest and fastest growing customers offer Slavic401k’s plans to their small business clients.

How are the two products integrated?

401(k)-related changes made either in the Slavic401k system or the PrismHR platform can now be synced automatically in near real time. PrismHR now automatically updates new 401(k) enrollments, deferral rate changes and new and ongoing loan information for payroll deductions.

Slavic 401k automatically updates new hires, hours worked for eligibility calculations, terminations, testing and employee type/status changes.

And now, employees can easily view and make changes to their Slavic 401(k) plan from within the PrismHR Employee Portal where they can view a dedicated 401(k) widget that enables participants to view their current status, performance and, through single-sign-on, access their account on the Slavic401k site to make changes themselves and allows non-participants to enroll. Learn more about Slavic401k.

What does this mean for my HR service provider business?

401(k) programs are among the most highly desired benefits that small businesses seek to offer their employees, but they can be cost prohibitive and complex. HR service providers can now offer Slavic401k retirement plans with a minimum amount of intervention, effort and associated cost.  

What does this mean for our customers and their small business clients?

Saving for retirement is a big challenge; 401(k)s are a fantastic vehicle for planning for the future. Employers can now offer easy, low cost, high quality 401(k) plans to retain employees and attract new ones with high participation rates that improve their overall financial wellness.

How do HR service providers enable the integration?

• Current PrismHR customers, whether you already work with Slavic or not, should contact their Customer Success Manager at csm@prismhr.com.
• If you’re not a PrismHR customer but would like to talk about how 401(k) plans can help you retain customers and attract new ones, contact us today.