Paychex (PAYX) Unveils a Cost-Effective Retirement Plan
Paychex, Inc. PAYX yesterday introduced the Pooled Employer Plan (“PEP”) in response to the provisions of the SECURE Act.
PEP enables collective participation of employers in a 401(k) plan that is administered by Paychex as a Pooled Plan Provider (P3). Employers get relief from fiduciary and administrative burden as P3 is plan sponsor as well as formal plan administrator. They need not communicate with or keep watch on third-party fiduciary services providers.
PEP is especially suitable for small- and medium-sized businesses as it allows them to deliver cost-effective retirement plan options with simplified plan management.
Tom Hammond, Paychex’s vice president of Corporate Strategy and Product Management said, "Not only has the COVID-19 pandemic made business more complex than ever before, it's significantly impacted the financial security of millions of Americans. Expanding retirement plan access is critical to the long-term financial wellbeing of workers nationwide."
Notably, Paychex shares have gained 20.6% over the past six months, outperforming the 16.5% rally of the industry it belongs to and 16.1% growth of the Zacks S&P 500 composite.
Zacks Rank and Stocks to Consider
Paychex currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Business Services sector are Republic Services RSG, Gartner IT and Insperity NSP, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1(Strong Buy) Rank stocks here.
Long-term earnings (three to five years) growth rate for Republic Services, Gartner and Insperity is estimated at 9.4%, 13.5% and 15%, respectively.
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Paychex, Inc. (PAYX) : Free Stock Analysis Report
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