INDIANAPOLIS, June 14, 2017 /PRNewswire/ -- As the retirement and financial industry shifts to comply with the ever-evolving world of fiduciary regulation, OneAmerica® today announced the debut of revenue accounts to help ease the burden on both customers and financial advisors.
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 Pat Foley, OneAmerica president of Individual Insurance and Retirement Services. "At OneAmerica, we continue to ask how we can best serve those who depend on us, and we are committed to finding innovative solutions."
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 Terry Burns, assistant vice president of Products and Investments for OneAmerica Retirement Services. "We believe revenue accounts will help our distribution partners by providing a fee-based compensation versus a commission for the great work they do, particularly on behalf of the small and mid-size plan market, where plan sponsors often need help in their efforts to ensure their participants can retire comfortably."
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The way a commission is calculated is preserved, and commission amounts are credited to the plan's revenue account then withdrawn that day and paid to the advisor as a fee.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 McCready and Keene, Inc. or OneAmerica Retirement Services LLC, companies of OneAmerica which are not broker/dealers or investment advisors.
A national leader in the insurance and financial services marketplace for 140 years, the companies of OneAmerica help customers build and protect their financial futures. OneAmerica offers a variety of products and services to serve the financial needs of their policyholders and customers. These products include retirement plan products and recordkeeping services, individual life insurance, annuities, asset-based long-term care solutions and employee benefit plan products. Products are issued and underwritten by the companies of OneAmerica and distributed through a nationwide network of employees, agents, brokers and other sources who are committed to providing value to our customers. To learn more about our products, services and the companies of OneAmerica, visit OneAmerica.com/companies.