“The same global investment management team will apply the same research that they make available to their institutional clients,” says Connelly. “Most of the time, small plans can’t access that type of expertise; they don’t have sufficient balances.”
ClearFit will use Ascensus’s infrastructure to integrate with employers’ payroll processing, manage withdrawals, loans and distributions, deliver notices to participants, and offer mobile and digital access to participants. The flat-dollar cost for record keeping, up to 25 participants, is $3,950, with a per-participant fee based on total plan size for larger employers.
ClearFit will also engage participants with educational materials and in financial wellness content.
“Morgan Stanley is working with us to create content on topics that should be important to small employers and employees,” says Connelly. “Sponsors will not have to ask for these materials and services; they’re going to be created and pushed out to the plans.”
Morgan Stanley’s plan advisors would then have more time to work with participants on other non-fiduciary issues, says Connelly.