The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:Merrill Taps Into Paychex's 401k Service Not Rated 3.0 Email Routing List Email & Route  Print Print
Friday, April 09, 1999

Merrill Taps Into Paychex's 401k Service

Reported by Tony Pennino

Merrill Lynch is tapping into the latest trend in the defined contribution marketplace -- fund companies with strong distribution channels to small companies partnering with administrators with strong 401k products. Goldman Sachs has used ADP to distribute its funds to small plans for more than a year and recently American Express Financial Advisors paired with MetLife's small plan platform. Now, Merrill Lynch of Plainsboro, New Jersey is partnering with Paychex of Fairport, New York.

"Merrill Lynch will be using Paychex's recordkeeping services for its smaller 401(k) plan clients," Paul Davidson, director of retirement services at Paychex, told our sister publication, The 401kWire.com.

"How this all began is that we began our recordkeeping service a few years back. Through that service, we offered our clients investment options from a number of fund families including Merrill Lynch. Now, Merrill will be utilizing our recordkeeping for some of their plans," Davidson reported. The sales channel for this service will be the Plainsboro firm's Financial Consultants.

"This will be for small plans only. And by that we mean sponsors with fewer than 100 employees," he added. Current clients of Merrill with 100 employees or less will retain their current recordkeeping services. This new alliances will be for new clients only.

"This is a terrific opportunity for us," the official contended. "We have a much larger source for new business through Merrill Lynch's channel. Previously, all our clients came to use through the efforts of our sales force. The sponsors we have through our alliance with Merrill Lynch will receive exactly the same services as sponsors who come to us independently."

Paychex currently does not have an Internet application for its systems. It is a service to be introduced on the horizon, according to Davidson. He did not know at this juncture whether clients of the alliance would be accessing online services through a Merrill Lynch website or a Paychex website.  

Stay ahead of the news ... Sign up for our email alerts now

 Do You Recommend This Story?

Return to Top
 News Archives
2019: Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Add to My Yahoo!
follow us in feedly

©All rights reserved to InvestmentWires, Inc. 1997-2019
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use