Paychex Surpasses 120,000 401(k) Clients

July 23, 2024 at 09:00 AM EDT

The retirement leader’s Paychex Pooled Employer Plan also reaches 34,000 employers

Paychex, Inc., a leading provider of integrated human capital management software solutions for human resources, employee benefits, insurance services, and payroll, has surpassed a milestone for the number of 401(k) clients served, now administering plans for over 120,000 employers as of May 31, 2024, the company’s fiscal year end. The industry leader in 401(k) plan recordkeeping in the U.S.¹, Paychex has also surpassed $51 billion in assets under administration.

The Paychex Pooled Employer Plan, launched in 2021 to give business owners an affordable way to provide their employees with a retirement plan with fewer fiduciary and administrative burdens, has fueled growth of the company’s 401(k) offerings and has been adopted by 34,000 employers with more than $1 billion in plan assets.

“In the midst of a retirement savings crisis in America, we believe it is our purpose to help small- and mid-sized business owners offer an affordable retirement solution for their employees. Paychex enables 1.5 million Americans to save for their future; however, research shows approximately half of U.S. employers currently offer a retirement plan. We are committed to providing affordable solutions to these companies that will help them offer their employees the opportunity for a secure retirement,” said John Gibson, Paychex president and CEO.

“Legislation like the SECURE Act and SECURE Act 2.0, the introduction of pooled employer plans, and state mandates are helping, but there is more to be done,” Gibson added. “We are committed to educating business owners and industry professionals on available programs, potential tax benefits, and cost-effective plans available for them and their employees. We continue to provide robust retirement products and services, financial advisor and accountant partnership programs, and advocacy in the nation’s capitol, because we acknowledge every American’s right to feel secure in their retirement.”

Paychex 401(k) customers and participants have access to:

Full integration with Paychex Flex^®. Users can integrate their 401(k) plans with the company’s SaaS-based HR suite, Paychex Flex, which supports HR, payroll, insurance, and other services, to reduce administrative time and cost, improve reporting, and help meet fiduciary obligations.
Pooled Employer Plan option. The Paychex Pooled Employer 401(k) Plan (PEP) gives business owners a simpler, cost-effective way to offer comprehensive retirement benefits to employees. Paychex acts as both plan sponsor and plan administrator of the PEP, reducing employers’ fiduciary and administrative burdens. The PEP is especially well-suited for small to mid-sized businesses that may have been unable to offer a retirement plan due to the lack of affordable plan options, time, or resources needed to manage complex plan administration. PEPs also offer a feature-rich alternative to the growing number of state-mandated retirement plan programs and can be a beneficial option for employers with an existing plan looking to reduce fiduciary and administrative responsibilities.
Accessible investment management and self-service tools. Paychex solutions allow participants to take control of their experiences. The company's mobile-first technology lets users enroll in, view, and manage their retirement plans in just a few clicks on any device. Other tools—like savings calculators and automatic contribution increases—help participants maximize their retirement savings, and personalized investment advice from third-party experts helps them make more informed decisions for their futures.
Fee transparency. Paychex plans make visibility a top priority. Participants and employers get clear explanations of any fees they pay related to the account. With a return of concessions feature, most 401(k) plans with Paychex return revenue-sharing payments to the plan, ensuring fee equalization, share class neutrality, and fee transparency.
Investment flexibility and fiduciary solutions. Plan administrators of single-employer plans receiving services from Paychex can choose from thousands of plan investment choices, with no proprietary requirements, or get help managing plan investments from either a third-party 3(38) investment manager that selects plan investments or 3(21) investment advisor that advises on plan investments to help reduce fiduciary risk.

“Our growth in the 401(k) space has meant that more employees across the U.S. are now able to save for their retirement, and the more than 120,000 employers who have adopted these plans have a critical benefit offering that will help attract and retain talent in today’s challenging labor market,” added Gibson.

Learn more about Paychex 401(k) and Retirement Services here. Financial services professionals seeking to offer flexible retirement plans to their clients can learn more at Financial Advisor Partnerships with Paychex.

About Paychex

Paychex, Inc. (Nasdaq: PAYX) is an industry-leading HCM company delivering a full suite of technology and advisory services in human resources, employee benefit solutions, insurance, and payroll. The company serves over 745,000 customers in the U.S. and Europe and pays one out of every 12 American private sector employees. The more than 16,000 people at Paychex are committed to helping businesses succeed and building thriving communities where they work and live. Visit paychex.com to learn more.

¹ By 401(k) participating employer count as validated by publicly available information for calendar year 2023.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240723387010/en/

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Media Contacts

Samantha Jean

Public Relations Program Manager II

Paychex, Inc.

(585) 218-6086

skjean@paychex.com

@Paychex

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