The platform launches with the ability to support 401(k) plans. The ability to accommodate 403(b) plans and non-ERISA defined contribution plans will be added later next year.
Moving forward, Smart US will add financial wellness advice and guidance for plan participants to its platform, said Ledford.
Ledford also has his eyes on the state-sponsored defined contribution plan space.
“There’s no question that people will be in these state plans, but how that space evolves we don’t yet know,” he said. “Obviously, if it makes sense from a business perspective, we’ll be ready to work in that space.”
Ledford noted a few additional trends in retirement plan management. One is demographic change, which encompasses a wave of baby boomer retirements and a population that is aging as a whole.
Another is the possibility that U.S. employers will at some point in the future be mandated by law to provide retirement plans, like those in the U.K. But Ledford said that Smart’s business will also grow as more employers decide to step back from administering their own retirement plans in lieu of a more efficient technology-based solution.
“I think you’re going to start seeing companies re-evaluate what their core competencies are,” he said. “If I’m a carmaker or a food company, why would I keep administering retirement plans? Why should I retain a staff to administer these plans?”