OneAmerica announces rollout of advisor-friendly revenue accounts
By a
In the company's latest effort to increase transparency around compensation and conflicts of interest, OneAmerica revenue accounts offer a shift from commission-based payments to fee-based payments for financial advisors. Created at the plan level, revenue accounts can be used to pay an advisor's fee - without requiring deductions from participants' accounts.
"We recognize the changing environment and the challenges it can bring our customers and advisors," said
There is no plan minimum, and any plan size or type can use a revenue account.
"This is a new and welcomed option for group annuity investments, because it makes retirement preparation easier for advisors and sponsors," said
A revenue account with OneAmerica will not require any changes to an existing plan's pricing or disturbance in the advisor's payment schedule. The way a commission is calculated is preserved, and commission amounts are credited to the plan's revenue account then withdrawn that day and paid to the advisor as a fee.
In response to advisor demand, OneAmerica previously expanded its group annuity platform to include zero revenue sharing funds, in which participants pay only the investment management expense. That initiative has been welcomed by the industry, which seeks increased fee transparency.
OneAmerica® is the marketing name for the companies of OneAmerica. Products issued and underwritten by American United Life Insurance Company® (AUL), a OneAmerica company. Administrative and recordkeeping services provided by
Retirement ready? OneAmerica has resources for employer plan sponsors designed to improve participant retirement outcomes. Learn more at https://www.oneamerica.com/retirement-readiness
Keywords for this news article include: OneAmerica.
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