NEW YORK, Dec. 1, 2016 /PRNewswire/ -- Betterment for Business, the technology-led 401(k) provider that aims to deliver better retirement outcomes and holistic advice, today announced that 300 plan sponsors now use its service. Launched only 11 months ago, Betterment for Business is used by progressive companies like Casper and Trello who are invested in their employees' futures.
The 401(k) industry, marked by high fees, conflicts of interest and subpar employee retirement outcomes, is ripe for disruption. Since its debut in January, Betterment for Business has received a groundswell of interest, particularly from mid-sized professional services firms like medical and dental practices, law firms, architecture firms, and technology companies. While the industries appear diverse, the common theme across plan sponsors is the emphasis placed on compelling benefits and a true desire to help employees save for retirement. Additionally, the average size of plans that have signed on has increased 12x in the last 10 months. "Plan sponsors now understand that lowering fees is only the first step in helping participants reach their financial goals," said Cynthia Loh, General Manager of Betterment for Business. "Participants can benefit from independent advice to help reach their goals, and the interest we've garnered in our service this year is only just the beginning. We look forward to converting more plans onto our platform in 2017." Regulators are even starting to bring light to the shortcomings of the 401(k) industry stalwarts. The Department of Labor's new fiduciary regulation, which is slated to go into effect in April 2017, has led plan sponsors to reassess their 401(k) offerings and look to implement plans from independent providers offering unbiased advice. Betterment is a fiduciary that provides 401(k) participants with independent advice that uses proprietary, smart technology to automate and help optimize asset allocation, aiming to provide greater value than traditional 401(k) plans and approaches. Casper, the award-winning sleep brand revolutionizing the mattress industry, is one of the 300 companies to sign up as a plan sponsor. "We created Casper because better sleep makes for better living," said Jason Costi, VP of Finance at Casper. "Just like our customers deserve the best night's sleep, our employees deserve the best benefits. That's why we chose Betterment for Business, the 401(k) platform for sleeping well at night." Trello, a web-based project management application, has also signed up as a plan sponsor. "Our plan conversion required significant experience and industry expertise, and Betterment for Business made the process seamless," said Brian Schmidt, VP Operations & General Counsel at Trello. "Betterment for Business offered a top quality onboarding experience, incredible customer service, and made something that is typically complicated and taxing enjoyable and easy." For HR teams, Betterment for Business is a turnkey 401(k) service, handling every aspect of the 401(k) enrollment and management process. Betterment for Business provides fast and simple onboarding, a low administrative burden and dedicated customer support seven days a week.